Class Notes (834,979)
Canada (508,839)
York University (35,167)
ADMS 2610 (430)
Lecture

Lecture7.docx

3 Pages
73 Views
Unlock Document

Department
Administrative Studies
Course
ADMS 2610
Professor
Robert Levine
Semester
Summer

Description
Lecture 7 AGENCY LAW involves: Principal, agent and third party. Function: the agent act on the behalf of the principal, affects a contract between the principal and the third party. Two forms of agency: - Express: where the job of the agent is expressed in the case of business. Agent’s expressed authority: where the agent performs as per instructed by the principal - Less than express: Eg.1. President of company X is gonna have a lunch with the supplier. He is taking with him his national sales manager. The president in the alcoholic dozed state tells the third party that the sales manager is also responsible for marketing and advertising. But the third party in the believe that the manager was responsible for marketing and advertising makes a contract with the sales manager. The contract is binding and real. Test : a. Did the agent have an expressed authority to affect a contract with the third party? If no, next question b. Did the agent have apparent or ostensive authority (authority more than he actually does) to affect that? If yes, next question c. Did the third party know that the agent does not have the authority? If no, then there is a contract. If yes, knowledge of the third party eliminates the contract. Agency by estoppels: when the principal finds out about it and does not like it and wants to cancel the contract. The third party can raise the agency’s authority so expressed and stop the principal from cancelling the contract. The principal is estopped. Agency by ratification: where the agency has no expressed or ostensive authority but enters into a contract and the principal “ratifies” with the third party ( agrees to the contract). Note: there is a contract even in the absence of agent’s authority. Principal’s right against agent: - An agent has a fiduciary duty to act in the best interest of the principal. - Where there is breach of the fiduciary duty, agent loses out on his remuneration and be sued by
More Less

Related notes for ADMS 2610

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit