LAW 603 Chapter Notes - Chapter 20: Apparent Authority, Fiduciary
11 Feb 2013
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Chapter 20 agency and other methods for carrying on business. Principal a person whom an agent represents for some specific purpose. Agency the legal relationship between a principal and an agent: some agency relationships are governed by special statutes. Legislation addresses the risk that stock brokers may not have sufficient assets to pay claims against them by their clients. Express agreement is a common way to create an agency relationship: principal and agent enter into a contract that sets out the terms on which the agent is appointed (including scope of agent"s authority and remuneration) Individuals acting on behalf of a corporation are agents: ex: directors, officers, other employees. Agency can arise as a matter of law: ex: in partnerships each partner is an agent of that partnership. Even if an agency relationship does not exist, an agent can still enter into an agreement that ultimately binds a principal in limited circumstances.
