Management and Organizational Studies 2275A/B Lecture Notes - Lecture 13: Uberrima Fides, Fiduciary, Estoppel

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

Document Summary

The principal cannot stop the agents" authority unless it informs the third party of the agents limited authority: a person is doing business on behalf of the principal. Agency a relationship that exist when one party represents another party in the formation of legal relations. Outsider the party with whom the agent does business on behalf of principal. Law of agency the law governing the relationship of the agency. Action or words by both parties portray an agency relationship. Actual authority: the power of an agent that derives from either express or implied agreement. Apparent authority: the power that an agent appears to have to an outsider because of conduct or statements of the principal. An agency relationship created when the principal acts such that third parties reasonably conclude that an agency relationship exist. An agency relationship can be created by estoppel when a principal introduce an agent even if there is no agency relationship.