SMGT 3861 Lecture Notes - Lecture 4: Estate Planning, Apparent Authority, Career Management
Document Summary
Definition: agency law: law that governs the relationship between a principal and an agent, a legal relationship that is essential to business function (e. g. , entering into contracts) Agency formation: by agreement - by contract, by ratification: principal accepts/affirms the acts of a person who has no authority, authority, actual, apparent. Ratification: ratification: the principle"s affirmation of an agent"s actions, even though the agent lacked authority to act on behalf of the principal at the time of those actions. Actual authority: actual authority: the agent reasonably believes that his actions are within the scope of authority given by the principal, express: authority specifically granted in agency agreement. Implied: authority that is reasonably necessary to carry out express authority (e. g. , agent has express authority to negotiate contracts; has implied authority to travel, hire employees to aid him or her) Apparent authority: apparent authority: a situation where the principal allows a situation to exist that may mislead others about the agent"s actual authority.
