[LAW 603] - Midterm Exam Guide - Ultimate 23 pages long Study Guide!
5 Oct 2016
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Chapter 20 agency and other methods of carrying on business. Agent a person who acts on behalf of someone else for some specific purpose. Principal a person whom an agent represents for some specific purpose. Agency the legal relationship between a principal and an agent. **sometimes the agent has authority to bind the principal to a contract. **agents do not always have authority to enter into legal obligations on the principal"s behalf they may represent the principal"s interests. The law of agency is at the heart of commercial life majority of business transactions require a person or persons to act on behalf of another. Under what circumstances is a principal legally bound by the actins of its agents determined by the authority of the agent. Express agreement the principal and agent enter into a contract that sets out the terms on which the agent is appointed; including the agents authority and remuneration (fee) o.
