Management and Organizational Studies 2275A/B Chapter Notes - Chapter 15: Apparent Authority, Estoppel

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

Document Summary

Concerned with the relationship that arises when one individual either expressly or impliedly uses the services of another to carry out a specific task on his or her behalf. Must be an act in good faith with each other. Principal: a person on whose behalf an agent acts. Agent: a person appointed to act for another, usually in contract matters. Agency of express agreement: an agency relationship established by an express oral or written agreement. Agency of conduct: an agency relationship inferred from the actions of a principle. Must comply with the statute of frauds. Duties of the agent to the principal: agent must obey all lawful instructions of the principle and keep confidential information, agent must keep constant contact and updates on the negotiations. Agency of estoppel: a representation by words or conduct that a person as an agent cannot be later denied if a third party relies on the representation.