LAW 603 Chapter Notes - Chapter 20,21,22: Mens Rea, Unanimous Consent, Legal Personality
28 Jan 2015
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Chapter 20- agency and other methods of carrying on business. Creation of an agency: express agreement, in those provinces where the statute of frauds is still in force, the contract must be in writing if the relationship is to last longer than one year. You could agree to ratify the contract by choosing to accept the contractual obligations. Actual authority: exists when the principal actually authorizes the agent to act on its behalf. The authority a principal gives an agent to act on its behalf. Apparent authority: exists when the principal creates the reasonable impression that the agent is authorized to act on the principal"s behalf. A principal will be bound by contracts within the agent"s apparent authority only if the third party relied on that appearance of authority. But a third party cannot enforce a contract if it knew, or should have known, that the agent did not have authority.
