MCS 3040 Chapter 13: Chapter 13 The Agency Relationship

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

Document Summary

Relationship that exists when one party represents another party in the formation of legal relations. A person who is authorized to act on behalf of another. A person who has permitted another to act on her behalf. The party with whom the agent does business on behalf of the principle. The law governing the relationship where one party, the agent, acts on behalf of another, the principle. Agency relationship created by contract normally involves the principal authorizing an agent to act on her behalf and the agent agreeing to do so in return for some fee or other remuneration. Is inferred from the position the agent occupies. Is reasonably necessary to carry out or otherwise implement the agent"s express authority. Arises by virtue of a well-organized custom in a particular trade, industry or profession. For a short, long or indefinite period of time.