BUS 265 Lecture Notes - Lecture 15: Accounts Payable, Indep, Independent Contractor
Document Summary
It is a representative relationship in which an individual represents another person or entity in the real world. Just like the executives of a company represent that company in the real world. Parties in an agency relationship: principal person being represented by an agent, agent person doing the representing, 3rd party person or business the agent communicates with on behalf of the principal. Giving agents power in different ways: expressed (actual) authority, contractual and defined. Duties of principal: compensation, paying the agent fair value of their actions, reimbursement. 10/27/2018: repayment of reasonable expenses of business conducted by the agent. Indemnification: cover legal cost incurred by agents for actions taken within the scope of their authority, reasonable actions only, actions within their expressed authority, cooperation, principal must give agent necessary supplies to perform their duty, safe working conditions. Duties of agents: performance, reasonable care and skill in similar situations, notification, communication of all material matters to the principal.
