BU231 Chapter Notes - Chapter 17: Law Of Agency, Independent Business, Fiduciary
Document Summary
Agent: a person acting for another person in contractual relations with third parties. Principal: the person on whose behalf the agent acts. Dependant agents: an agent who acts exclusively or mostly, for a single principal. Independent agents: an agent who carries on an independent business and acts for a number of principals. May be created from an employment contract, but an agent need not be an employee, as all employees are not agents (important for income tax) Agency is used informally, and does not necessarily give all agents the power to enter contracts (eg. real estate contract) Creation of an agency relationship any person who has the capacity to contract may appoint an agent, and the power is limited to the authority that the principal has. Agency agreement: the agreement between a principal and agent whereby the agent undertakes to act on behalf of the prinipal + third party agreement between the principal and the 3rd party.
