BU231 Chapter Notes - Chapter 17: Law Of Agency, Independent Business, Apparent Authority
Document Summary
Agency a relationship in which one person known as an agent is authorized by another person for whom she acts, known as the principal to form contracts with third parties on the principals behalf. Agent a person acting for another person in contractual relations with third parties. Principal the person on whose behalf the agent acts. The relationship between agent and principal is usually contractual, with the agent being paid by the principal. Gratuitous agent still bound by all duties imposed by agency law. Dependent agent an agent who acts exclusively or mostly for a single principal. An agent need not be an employee and not all employees are agents. Self employed agent compensated solely by commissions and does not receive any salaries. Independent agent agent who has independent business acting for a number of principals. Commission agent sells on behalf of principal to third parties and receives compensation through commission.
