ADMS 2610 Lecture Notes - Lecture 7: Apparent Authority, Independent Contractor, Estoppel
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Principal tells agent what to do, agent negotiates and if goes well, contract between
principal + third party.
Original contract between principle and agent to do negotiations or specic task
Once agent performed agreement, the agent gets outside the picture, and waits for
Agent’s job is a duciary act in good faith and does best for principal.
Agent has to follow instructions in letter , and if not, breach to the contract, and
there will be no commission.
Express authority: whatever is in the contract , part of the agreement.
By estoppel: stops principle from defending agent liability
Apparent authority: third party, given impression that agent has authority to enter
into contract, principle is liable because they led everyone astray.
If principal red agent, and the agent decides to come back at the principal, agent
goes and enters gets into with TP while TP still believes that agent is ostensible
authority. Have not informed TP of ring. Estoppel works here.
Ratication: agent may not have authority to enter into specic contract or doesn’t
do it the way they are supposed to, but principal raties, agrees and accepts, still
good for the principle.
Disclosed agency: “hello, I’m here to negotiate on behalf of Peter.”
Undisclosed agency: “hello, I’m an agent of a person I’m not going to tell or specify”
don’t get to use knowledge of principles identity to benet.
Principle only liable for contract if agent does job properly NOT a bad deal.
Tests are to determine whether you meet requirements of employee or independent
Want to know for task reasons, more “yes” answers = employee
Obligations of employer: safe work conditions, compensation, cover everything in
Employment Standards Act.