BU231 Lecture Notes - Lecture 15: Uberrima Fides, Secret Profit, Fiduciary
Document Summary
If the k will extend beyond one year, then it must be in writing to satisfy the. Apparent authority: authority that is not real but is acquired from a past manner of transacting business or from trade custom, ex. If an employee presents a contract on behalf of the company to a customer, e(cid:448)e(cid:374) if the e(cid:373)plo(cid:455)ee does(cid:374)"t ha(cid:448)e authority to enter into contracts, the company is legally bound by the signed agreement. 3rd party: not pra(cid:272)ti(cid:272)al for (cid:271)usi(cid:374)esses to (cid:272)o(cid:374)sta(cid:374)tl(cid:455) ha(cid:448)e to (cid:272)he(cid:272)k up o(cid:374) age(cid:374)t"s authorit(cid:455) If principal chooses to restrict normal authority within an industry, s/he is estopped (prevented) from denying liability under the k: holding out: represe(cid:374)ti(cid:374)g (cid:271)(cid:455) (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 particular authority. Implied term that principal will cover the reasonable expenses of the agent when acting in his/her real authority: no obligation to pay for unauthorized acts unless ratified.
