AFM 231- Midterm Exam Guide - Comprehensive Notes for the exam ( 27 pages long!)

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM231
• Professor: Sally Gunz

Document Summary

Why are they critical to business activities: corporations rely on agents, partners are agents for partnership, partners are agents for each other, employees as agents see p. 297. Three parties concerned with in agency law: duty of agent to principle, fiduciary duty: arises when there is a relationship of trust and dependency. If they pretend they are principles agent then they are liable for the risks of contract: has tort liability as well, duty of principle to third party. Liable for the contract agent negotiates with them. even when principles identity is undisclosed: tort: if agent is acting within express or apparent authority then principal is liable. Laws governing all the parties: agency law, contract law, tort law, doug and sonny, p. 310, fiduciary law, statute law (sometimes) Duties: rely on fiduciary principle, contractual, tort. Rights of agent: to enter into contract on behalf of principle. Intentionally ( contract) or unintentionally (express or apparent)