LAW 603 Lecture Notes - Lecture 5: Apparent Authority, Joint Venture, Fiduciary
31 Mar 2016
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Agent: the person acting on behalf of another. Principal: the person or legal entity on whose behalf they are acting is the principal. Agency: the legal relationship between a principal and an agent. What circumstances is a principal legally bound by the actions of its agent? (page. Actual authority: the agreement between the agent and principal describing what the agent is permitted to do on behalf of the principal. The principal authorizes the agent to act on its behalf. Apparent authority: the representation (express or implied) by the principal to third parties of the agent"s authority to act on the principal"s behalf. In cases of business organizations the agent that has authority to contract must be someone who is permitted to make such a representation under the allocation of responsibility within the business organization. Deemed authority: agency relationships deemed to exist as a matter of law (e. g. partnerships, statutory agents)
