BU231 Lecture Notes - Lecture 16: Uberrima Fides, Fiduciary, Franchising
Document Summary
If the k will extend beyond 1 year, then it must be in writing to satisfy the statute of. If principal chooses to restrict normal authority within an industry, they are estopped from denying liability under the k: holding out, represe(cid:374)ti(cid:374)g (cid:271)y (cid:449)ords or (cid:272)o(cid:374)du(cid:272)t that a perso(cid:374) is o(cid:374)e"s age(cid:374)t or has a authority. Duties of agent to principal: duty to comply with the agency agreement: Implied term that principal will cover the reasonable expenses of the agent when acting in their real authority: no obligation to pay for unauthorized acts unless ratified. If agent is sued successfully by 3rd party then principal has no liability. If existence of principal becomes apparent during court proceedings, 3rd party can have the action discontinued against the agent and brought against principal instead. The franchise agreement: consideration of the parties, conduct of the business, termination of the agreement, restrictive covenants.
