COMM 315 Chapter Notes - Chapter 5-6: Capital Structure, Debenture, Legal Personality
2 Sep 2016
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Mandate is a contract between two persons, the mandatory and mandatary. Mandatory empowers the mandatary to represent him in dealings with an outside party (third party) Mandatary is given the power not merely to assist the mandator in performing a task, but to act on behalf of the mandator and bind the mandatory to the agreement reached between mandatary and third party. Mandatory is bound by the agreement as if he had signed it himself. Mandate deals with two separate contractual undertakings: contract between mandatory and mandatary, contact that will be entered into between the mandatary and third person. A verbal agreement is sufficient to create a valid contract. Specific terms of a verbal agreement could be a lot more difficult to prove than the terms and conditions of a written document bearing signatures of both parties. Written agreement = less risk of misinterpretation. Mandatary expects no payment in return for his service mandate is referred by gratuitous title .
