ADMS 2610 Lecture Notes - Lecture 7: Apparent Authority, Independent Contractor, Estoppel
10 Feb 2016
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Principal tells agent what to do, agent negotiates and if goes well, contract between principal + third party. Original contract between principle and agent to do negotiations or specific task outlined. Once agent performed agreement, the agent gets outside the picture, and waits for commission. Agent"s job is a fiduciary act in good faith and does best for principal. Agent has to follow instructions in letter , and if not, breach to the contract, and there will be no commission. Express authority: whatever is in the contract , part of the agreement. By estoppel: stops principle from defending agent liability. Apparent authority: third party, given impression that agent has authority to enter into contract, principle is liable because they led everyone astray. If principal fired agent, and the agent decides to come back at the principal, agent goes and enters gets into with tp while tp still believes that agent is ostensible authority.
