Management and Organizational Studies 2275A/B Chapter Notes - Chapter 13: Uberrima Fides, Fiduciary, Secret Profit

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

Document Summary

Time constraint on a principal is another common reason for the use of an agent. In fact, in almost every business transaction, at least one of the parties is acting as an agent. Agency defined: the agent - principal relationship, the outsider - principal relationship, outsider : the party with whom the agent does business on behalf of the principal. Law of agency: the law governing the relationship where one party, the agent, acts on behalf of another, the principal. It is derived largely from tort and contract law. There is very little legislation pertaining to agency as such , other than special statutes that govern the duties and responsibilities of specific kinds of agents ( insurance broker, mortgage broker). Creation of agency: an agency relationship can be formed in a number of ways. The most common method is by way of contract, when the parties formally agree to create an agency relationship.