BUSI 2601 Lecture Notes - Lecture 6: Sole Proprietorship, Sports Agent, Law Of Agency
3 Apr 2018
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Agency is the relationship between 2 persons that permits one person, the agent, to affect the legal relationships of another, known in law as the principal. These legal relationships are as binding on the principal as if that person had directly entered them herself. Age(cid:374)(cid:272)(cid:455) is a(cid:271)out o(cid:374)e perso(cid:374) represe(cid:374)ti(cid:374)g a(cid:374)other i(cid:374) su(cid:272)h a (cid:449)a(cid:455) as to affe(cid:272)t the latter(cid:859)s relationships with the outside world. In each case, the agent is acting for someo(cid:374)e else a(cid:374)d is doi(cid:374)g (cid:271)usi(cid:374)ess o(cid:374) that perso(cid:374)(cid:859)s (cid:271)ehalf. This kind of relationship is essential to the success of the principal (might not have the expertise). In fact, in almost every business transaction, at least one of the parties is acting as an agent. A corporation eneters into a contract through an agency of one of its directors or employees. A partnership is likewise bound to a contract through the agency of one of its partners or a firm employee.
