Management and Organizational Studies 2275A/B Lecture Notes - Lecture 5: Contract, Legal Personality, Apparent Authority

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Frederick King

Document Summary

Three types of businesses: sole proprietorships, partnerships, corporations. Incorporated: corporations: is a separate legal entity. More sole proprietorships than partnerships and corporations. In a partnership, you mitigate risk, more resources. Owners/shareholders of corporation were not liable for debts of the corporation. Agency results in a legally binding agreement between the principal and the 3rd party. Example: you need 1mil from a bank, and applies for a loan. The bank manager tells you to go to tina to approve the loan. Tina works at the bank and approves loans. The manager then calls you and tells you that you do not have a loan because tina"s loan limit is 000. You are the 3 rd party, tina is the agency, and the bank is the principal. You do have a contract, because tina"s apparent authority is mil plus, you did not know that her authority is only . Agents can be: employees, partners, independent contractors.