Management and Organizational Studies 2275A/B Lecture Notes - Lecture 7: Limited Liability Partnership, Fiduciary, Apparent Authority

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

Document Summary

One person(principal), and an agent, who negotiates with a third party, the results are an agreement between the principal and the 3rd party. In a partnership every partner is an agent of that partnership. Example: loan officer makes 1mil loan deal but has a limit of half a million. Comes from the principal, what they say and do creates the appearance of authority. Whatever 3rd party (person wanting loan) assumes the principle has (1 million is realistic considering bank manager sent you to tina after you asked for 1 million loan) work for apple) Apparent comes from the principle (cannot come in and say you. Example: using an agent to purchase a business that is your competitor, for. If the principal receives a benefit under the contract and then tries to go back and o o authority), no contract if principal doesn"t ratify it. Negotiates and pays for business for 000, there is a contract.