Management and Organizational Studies 2275A/B Chapter 13: Chapter 13
18 Nov 2018
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It is inferred from the position the agent occupies. It is reasonably necessary to carry out or otherwise implement the agent"s express authority. It arises by virtue of a well-recognized custom in a particular trade, industry, or profession: the length of agency can be determined, very broad/narrow, for one transaction/many transactions, for a short/long/indefinite period of time, very formal/informal. Apparent authority: the power that an agent appears to have to an outsider because of particular conduct or statements of the principal. It is the responsibility of the principal to make their agents and responsibilities of their agents known to their third party - otherwise they are liable. Agent: an agent failing to act within their duty can be deemed as a breach of contract, this is why they are required to perform in accordance with the request of their principal. Indemnify against losses incurred in carrying out the agency business.
