ADMS 2610 Lecture Notes - Lecture 7: Contract, Estoppel
Document Summary
Law deals with relationship between principal and agent. A person on whose behalf an agent acts. A person appointed to act for another, usually in contractual matters. Arises by express agreement, conduct, or necessity. Involves 3 parties: principal, agent, third party. Legal principles and conditions under which an agent can bind a principal to a contract. Governed by tort law, contract law, and equity. Agent is one who is empowered on behalf of another. Acts of agents bind principals if done within scope of power. Can act for more than one principal at the same time (insurance agents) Expressed: can be established by express agreement, either written or oral. Conduct: agency inferred from the actions of the principal. Contractual rules must be followed: statute of frauds, formal contracts, duties set forth in agreement (advantage to a written agreement) Contracts: contract one is between agent and principal, contract two is between principal and third party (although negotiated by the agent)