BSEN 395 Lecture Notes - Lecture 4: Contract, Uberrima Fides

• School: University of Calgary
• Department: Business and Environment
• Course: BSEN 395
• Professor: Rob Malach

Document Summary

Agency- law deals with relationship between principal and agent. Principal- a person on whose behalf an agent acts. Agent- a person appointed to act for another, usually in contractual matters. If a(cid:374) (cid:862)e(cid:374)du(cid:396)i(cid:374)g(cid:863) powe(cid:396) of atto(cid:396)(cid:374)e(cid:455), will (cid:272)o(cid:374)ti(cid:374)ue (cid:373)aki(cid:374)g (cid:272)o(cid:374)ditio(cid:374)s o(cid:374) their behalf even after they lose capacity to make their own decisions. Investment advisors acting on behalf of clients; insurance agent. Characteristics: arises by express agreement, conduct, or necessity, legal principles and conditions govern circumstances under which an agent can. Involves 3 parties: principal, agent, third party bind a principal to a contract: note: notice to agent constitutes notice to principal. **always have the inherent right to revoke an offer until acceptance/denial is communicated unless special consideration has been established** remember for midterm. Governed by tort law, contract law, and equity. Agent is one who is empowered on behalf of another. Acts of agents bind principals if done within scope of power.