BLS 112 Lecture Notes - Lecture 1: Harrisongs, Abkco Records, Apparent Authority

• School: Binghamton University
• Department: Business Law and Society
• Course: BLS 112
• Professor: Steflik

Document Summary

Businesses are legally bound by the actions of their employees or representatives. A corporation is an artificial legal person distinct from the officers, employees, and other representatives who contract on its behalf and who may commit torts while on the job. Agency is a two party-relationship in which one party is authorized to act on behalf of and under the control the other party(the principal). Agency law stimulates commercial activity by enabling businesses to increase the number of transactions they can complete within a given time. The first involves legal relations between the principal and the agent: include rules governing formation of an agency, the duties the principal and the agent owe each other and the ways an agency can be terminated. Fiduciary relationship because the principal entrusts the agent with power to make contracts for the principal and to possess and use the principal"s property: agency is a fiduciary of the principal and not vice versa.