LAW 603 Lecture Notes - Lecture 1: Fiduciary, Car Dealership, Real Estate Broker
23 Aug 2016
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Lecture 1 agency and other methods of carrying on business (chapter 20) This is at the heart of commercial life someone is representing someone else. As individuals we do not always do everything else we appoint someone to do it for us agent. The individual that appoints the agent is the principal. Agency is the legal relationship between agent and principal. Car dealership (agent salesman; principal the car dealership) Travel agencies (agent travel agent; individual principal) In agency the agent negotiates a contract on behalf of the principle the principle is legally bound. Example: car dealership the agent (dealership) tells his salesman not to sell anything under ,000. A customer comes in and purchases the car for ,000. The agent (dealership) is bound to the principal (salesman) Apparent authority implied or expressed authority the actions of the principal create the reasonable impression that the agent is authorized to act on behalf of the principal.
