Management and Organizational Studies 2275A/B Lecture 3: Chapter 13, 14

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

Document Summary

Agents can be: partners, employees, or independent contractors: agent-principal relationship. Between the principal and the party that the agent does business with. Law of agency: derived largely from tort and contract law. Actual authority: power of an agent that is from an express (written or oral) or implied agreement (by implication only) both types the agent actually has. Implied if: inferred from position of the agent, is reasonably necessary to carry out, or is a well- recognized custom in the trade/industry/profession: the nature of authority given to an agent is inherently flexible and easily customized. If agent is acting within apparent authority, the principal will be bound by the transaction. The onus is on the principals to inform outsiders when a person ceases to be their agent, otherwise, principals continue to be liable. Difference between estoppel and ratification - whether the principal has conducted himself in a misleading way.