MCS 3040 Chapter Notes - Chapter 13: Consumer Protection, Secret Profit, Manulife

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 3040
• Professor: Joe Radocchia

Document Summary

Agency: a relationship that exits when one party represents another party in the formation of legal relations. Agent: person who is authorized to act on behalf of another. Authority: principal is bound by contract, even when the agent acts outside the authority in contract, contract can still bind principal. Doiron had 60,000 to invest from a house sale. They assumed devon was representing manulife but he wasn"t. Thought they were investing in manulife product, lost entire investment. Agency relationship created when the principal acts such that third parties reasonably conclude that an agency relationship exits. Agency relationship created when one party adopts a contract entered into on his behalf by another who at the time acted with authority. Principals ratification can be expressed or implied. Raso v dionigi: raso was investing into property on behave of brother and sister, never told seller than this was the case, party accepted offer, became aware of relationship and refused sale.