BU231 Chapter Notes - Chapter 19: Independent Business, Fiduciary, Franchising
Document Summary
Agent a person acting for another person in contractual relations with third parties. Principal the person on whose behalf the agent acts. Dependent agent an agent who acts exclusively, or mostly, for a single principal. Independent agent an agent who carries on an independent business and acts for a number of principals. Commission agent one who sells on behalf of a principal to third parties and receives compensation through commissions. Any person who has the capacity to contract may appoint an agent to contract on their behalf. An agent"s power to contract on behalf of her principal is limited to the capacity that the principal possesses. Agency relationship the agreement between principal and agent whereby the agent undertakes to act on behalf of the principal. It is advisable for each party to have a written, signed copy of the agency agreement in order to minimize future misunderstandings about the terms of the arrangement.
