Management and Organizational Studies 2275A/B Study Guide - Sports Agent, Apparent Authority, Estoppel

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

Document Summary

Agency the 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: e. g. A sports agent negotiates a multimillion-dollar deal on behalf of a hockey player: a stockbroker buys and sells shares on behalf of individual companies. Agency defined: agency relationships operate for the most part with few difficulties, agents simply represent principals in transactions with others, two key relationships at play in an agency situation: Relationship between the principal and the party with whom the agent does business. Outsiders the party with whom an agent does business on behalf of the principal: law of agency the law governing the relationship where one party, the agent, acts on behalf of another, the principal. Most commonly, the relationship arises by contract between parties.