Management and Organizational Studies 2275A/B Lecture Notes - In Essence, Complete Control, Entrust

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

Document Summary

An agent"s function is to represent and act on behalf of a principal in dealings with third parties. By far the most common example of agents representing principals is in the creation of contracts, agents also find themselves involved in other types of legal relationships. Real estate agents do not usually have the authority to enter into contracts on behalf of vendors, but they function as agents nonetheless because they participate in the negotiations and act as go-betweens. Agency: refers to the service an agent performs on behalf of the principal: service may be performed as an employee, as an independent agent, or gratuitously. When an agent is acting independently, the business performing the service is often called an agency. Where employees also act as agents of the employer, their duties and obligations as agents go far beyond the employment relationship and must be understood as a separate function or set of obligations.