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

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

Document Summary

Agency: binding relationship between two persons that permits one person (agent) to affect the legal relationships of another (principal: one person representing the other like a sports agent working on the behalf of a hockey player. In business transactions corporation enters contracts through agency of one of its directors or employees. Agency defined: agents = represent principals in transactions with others, parties using agents instead of dealing with each other face to face can lead to problems, two key relationships. Principal and the outsider/third party (the party with whom the agent does business on behalf of the principal) Law of agency: the law governing the relationship of agency. Special statutes that govern duties and responsibilities of specific agents. Clerk/typist take money from petty cash and buy a present. The concept of authority: authority of agent is an important part of agency relationship, determines whether there is a contract between the principal and 3rd party, actual authority.