MGMT 3230 Study Guide - Final Guide: Estoppel, Legal Personality, False Advertising

• School: Mount Royal University
• Department: Management
• Course: MGMT 3230
• Professor: lorenzo petrin

Document Summary

Agency: an agent is a person who is authorized to act on behalf of another. A principal is a person who has permitted another to act on her behalf. Agency refers to the relationship that exists when one party represents another party in the formation of legal rel(cid:642)(cid:661)(cid:650)(cid:656)(cid:655)(cid:660)(cid:803) (cid:634)(cid:649)(cid:646) (cid:657)(cid:659)(cid:650)(cid:655)(cid:644)(cid:650)(cid:657)(cid:642)(cid:653) (cid:645)(cid:656)(cid:646)(cid:660)(cid:655)"(cid:661) (cid:649)(cid:642)(cid:663)(cid:646) (cid:646)(cid:665)(cid:657)(cid:646)(cid:659)(cid:661)(cid:650)(cid:660)(cid:646) (cid:661)(cid:656) (cid:649)(cid:642)(cid:655)(cid:645)(cid:653)(cid:646) (cid:660)(cid:650)(cid:661)(cid:662)(cid:642)(cid:661)(cid:650)(cid:656)(cid:655), (cid:660)(cid:656) (cid:650)(cid:661)"(cid:660) (cid:642)(cid:655) (cid:646)(cid:660)(cid:660)(cid:646)(cid:655)(cid:661)(cid:650)(cid:642)(cid:653) relationship to the success of the principal. Ex. an insurance agent selling fire and theft insurance on behalf of the insurance company, a booking agent negotiating fees and dates on behalf of entertainers, a stockbroker buying and selling shares on behalf of individuals and companies. Agency is created in three ways: 1) agreement: created by contract normally involves the principal authorizing an agent to act on her behalf and the agent agreeing to do so in return for some fee or other remuneration. This contract is created expressly only for that single purpose.