Management and Organizational Studies 2275A/B Chapter Notes - Chapter 13: Apparent Authority, Estoppel, Fiduciary

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

Agency a relationship that exists when one party represents another party in the formation of legal relations. Agent a person who is authorized to act on behalf of another. Principal a person who has permitted another to act on their behalf. In almost every business transaction, at least one of the parties is acting as an agent. Simply represent principals in transactions with others. Problem can result in complications since the parties don"t interact face to face but rather through their agent. Two relationships: relationship between the agent and the principal, relationship between the principal and the party with whom the agent does business. The agency relationship begins when the principal authorizes an agent to act their behalf and the agent agreeing to do so in return for some fee. The authority determines whether there is a contract between the principal and the outsider. Reasonably necessary to carry out or otherwise implement the agent"s express authority.