Management and Organizational Studies 2275A/B Lecture Notes - Lecture 5: Legal Personality, Sole Proprietorship, Apparent Authority

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

As business grow, there is a need for money, power, strength an so on. Partnership born, people carry on the business together. Corporations was legal a thing that carry on the business. Agency is important because is everywhere, helps us understand the law of partnerships. Is an exception to the doctrine of pro. Contract is between agent and principle is the agency agreement. What the reasonable person would think on the perspective of the third party. Comes from the words or deeds of the principle, not the agent. Bank introduce you to a agency, and the bank tells you that the agent can only lend you half million. So the agent has actual authority half million and apparent authority half million also. If an agent exceeds her authority, the principal can ratify or adopt the agreement. Don"t kno(cid:449) the principle, i ha(cid:448)e zero apparent authority. I act on behalf of my principle to buy a company for one million.