ADM 3360 Chapter 13: Ch.13- The Agency Relationship

• School: University of Ottawa
• Department: Administration
• Course: ADM 3360
• Professor: Gilles Le Vasseur

Document Summary

Agency: a relationship that exists when one party represents another party in the formation of legal legislation. Agent: person who is authorized to act on behalf of another. Principal: person who has permitted the agent to act on her behalf (may not have the expertise to handle the given matter): agency defined. Operate for the most part w/ few difficulties agents simply represent principals in transaction with others (similar to contractual relationship). Two key relationships at play in an agency situation: ***outsider: the party with whom the agent does business on behalf of the principal. Laws of agency law governing the relationship where one party, the agent, acts on behalf of another, the principal. Creation of agency: agency by agreement. Normally involves the principal authorizing an agent to act on her behalf, and the agency agreeing in return for some fee/other remuneration. Contract created expressly and only for that single purpose: the concept of authority.