LAW 3102 Chapter Notes - Chapter 20: Constructive Notice, Apparent Authority, Actual Notice
Document Summary
Principal wants to be liable only for those contracts he actually authorizes the agent to make for him. The principal and the third party are bound to those contracts the principal actually authorizes plus those the principal has apparently authorized. The law of agency has established rules to determine when the principal is liable for the torts and crimes his agents commit. Usually the agent has no liability for, or rights under, the contracts she makes on behalf of her principal. The power of agent is his ability to change the legal status of his principal. Makes a contract for his principal he creates new rights or liabilities for his principal changes legal status of principal. The principal is a disclosed principal: if when an agent and a third party interact, the third party has notice that the agent is acting for a principal and also has notice of the principal"s identity.
