LAW 603 Chapter Notes - Chapter 20: Fiduciary, Implied Powers
22 Jul 2016
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Law603 chapter 20 notes: agency and other methods of carrying on business. Agent: a person who acts on behalf of someone else for some specific purpose. Principal: a person whom an agent represents for some specific purpose. Agency: the legal relationship between a principal and an agent. Sometimes the agent has authority to bind the principal to a contract. Agents do not always have authority to enter into legal obligations on the principals behalf. Agents are subject to legal standards of behaviour that are designed to protect principals form some of the risks to which their agents may subject them. Basic rules of agency: creation of an agency relationship. An agency relationship can be created by express agreement where the principal and the agent enter into a contract that sets out the terms including remuneration. In provinces where the statue of frauds is still in force, the contract must be in writing for relationships longer than 1 year.
