Management and Organizational Studies 2275A/B Lecture Notes - Lecture 7: Derivative Suit, Fiduciary, Ultra Vires

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: James F Hildebrand

Document Summary

Business law lecture #7, agent works for the principal. The agent has authority to negotiate and enter into contracts with a 3rd party on behalf of the principal. An example would be a stock broker who would be an agent. The agent has between the agent and the principal and then there is a contract between the. Ex. a real estate agent isn(cid:495)t an agent by this definition: there agent has some obligations to the principal. )t is a contract of (cid:494)upmost good faith(cid:495) (cid:523)you have to have their interests above your own(cid:524). The principal is required to pay the agent for any fees. The agent obligation is required to the authority to bind 3rd parties in a contract. keep any confidential information confidential. Ex. a real estate agent cannot disclose that their client is willing to pay or take less than offered. The agent and the principal have the same knowledge.