Management and Organizational Studies 2275A/B Lecture Notes - Lecture 10: Travel Agency, Fiduciary, Uberrima Fides

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

Document Summary

Agency refers to a service that is being performed by an agent to represent a principal. An agency can be created by: express/implied contracts, estoppel, ratification, agency of necessity, gratuitously. The main thing is that one is granting authority. General rules apply; duties of the agents, the extent of authority one has etc: power of attorney. When contract is put under a seal and is in writing. All elements of a contract should be present. Travel agent would have authority that any usual other agent in field would have unless stated otherwise: apparent authority. When a principal leads a third party to believe in agents authority, it is now binding. If one says paul has authority for me when there is no actual authority, then the principal is bound by it and cannot go back on word. The principal is bound in contracts if the there is either actual authority or apparent authority: ratification.