LAW 603 Study Guide - Midterm Guide: Employment Contract, Apparent Authority, Whud
7 Feb 2015
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Ch20: agency and other methods of carrying on business: basic rules of agency, risk management issues, business relationships in which agency issues arise. Agent (a) = person who represents someone else for a specific purpose. Principal (p) = person who an agent rep for a specific purpose. Third party(tp) = person other than a and p ex. Real estate agents, insurance agents, stockbrokers , partners of a partnership, etc. Creation of an agent relationship: by express agreement (with actual authority) P actually authorizes the a to act on its behalf. An agency longer than 1 yr must be in writing (statue of frauds) Ex. real estate agent ;lawyer acting for u in a real estate transaction. Corp can only act thru human beings (ex. Corps employee can receive actual authority by. For an a to have authority to sign cheques a must have written agreement: employment contract, board of directors" resolution or, position held, by apparent authority.
