Management and Organizational Studies 2275A/B Chapter Notes - Chapter 13: Apparent Authority
Document Summary
There are two key relationships at play in an agency situation. These rules are known as the law of agency, which, in turn, is derived largely from tort and contract law. Creation of agency: agency relationships are created in a variety of ways. !1: the agency agreement may be express or implied, oral, in writing, or in writing under seal. If the agent is to issue promissory notes or sign cheques in the name of the principal, then the agency agreement should be in writing. Wednesday, november 8, 2017: a special type of express agency agreement is the power of attorney. It is a grant of authority under seal and it permits the agent to sign documents on behalf of the principal under seal: an agent"s actual authority can be both express and implied. Express authority is the written or oral authority granted by the principal to the agent and is an authority that the agent actually has.