MGMT 3100 Chapter Notes - Chapter 17: Law Of Agency, Independent Business, Fiduciary
17 Jul 2016
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Agency is relationship in which one person, known as agent, is authorized by another person for whom she acts, known as principal, to form contracts with 3rd parties on the principal"s behalf. Agent: person acting for another person in contractual relations with 3rd parties. Principal: the person on whose behalf the agent acts. Person may also act gratuitously as an agent; still bound by all duties imposed by agency law. Dependent agent: an agent who acts exclusively, or mostly, for a single principal. Agency may be created by terms of employment contract. Functions of agency and employment may be completely separate. 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 3rd parties and receives compensation through commissions. Without the power to contract, a representative is not an agent in the legal sense.
