Management and Organizational Studies 2275A/B Chapter Notes - Chapter 13: Law Of Agency, Fiduciary, Uberrima Fides

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

Document Summary

Law of agency law governing the relationship where on party (the agent) acts on behalf of another, the principal. Is reasonably necessary to carry out or otherwise implement the agent"s express authority. Arises by virtue of a well-recognized custom in a particular trade, profession, industry: apparent authority power that an agent appears to have to an outsider because of conduct or statements of the principal. As long as an agent is acting within his apparent authority, the principal will be bound unless a third party knew or ought to have reasonably known of the limitation on the agent"s authority. Rockland of 50000tons of sulfur and was concluded on sept5, 1974; however on sept3, Deverin (senior vp above kurtz) informed him that he would need approval of executive committee to make the sale: contract was thus not performed, and rockland sued for breach of contract, Indemnify against losses incurred in carrying out the agency business.