COMM231 Chapter 13: Chapter-13-Agency-Notes.docx

• School: University of Waterloo
• Department: Commerce
• Course: COMM231
• Professor: J.Raddochia

Document Summary

Agency: a relationship that exists when one party represents another part in the formation of legal relations. The agent acts on behalf of the principal. Examples: insurance agents sells insurance on behalf of insurance companies, a sports agent negotiates deals on behalf of an athlete. Agent: a person whi authorized to act on behalf of another. Principal: a person who has permitted another to act on her behalf. Law of agency: the law governing the relationship where one party the agent acts on behalf of another, the principal. Agency by agreement: agency relationship created by contract which authorizes the agent to act on her behalf in return for a fee. Authority is a key aspect in the agency relationship b/c it determines whether there is a contract between the principal and the outsider. Can be implied by position agent occupies, necessary to carry out their express authority, or it is a custom of a particular trade/industry/profession.