Management and Organizational Studies 2275A/B Chapter Notes - Chapter 13: Sole Proprietorship, Apparent Authority, Estoppel

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

Agency : a relationship that exists when one party represents another party in the formation of legal relations. Agent : a person who is authorized to act on behalf of another. Principal : a person who has permitted another to act on her behalf. = in each case, the agent is acting for someone else (the principal) and is doing business on that person"s behalf. Agency relationships operate for the most part with few difficulties = agents simply represent principles in transactions with others. Outsider : the party with whom the agent does business on behalf of the principal (third party) The complications resulting from these relationships have necessitated rules of law to regulate and resolve them = law of agency. Law of agency : the law governing the relationship where one party, the agent, acts on behalf of another, the principal. Agency relationships are created in a variety of ways; The relationship arises by contract between the parties.