LAW 603 Study Guide - Midterm Guide: Strategic Alliance, Implied Powers, Fiduciary

• School: Ryerson University
• Department: Law and Business
• Course: LAW 603
• Professor: Nick Iannazzo

Document Summary

Chapter 20 agency and other methods of carrying on business: agent, is person who acts on behalf of someone else for specific purpose, principal, person whom an agent represents for some specific purpose, agency, is legal relationship between principal and agent, creation of agency relationship. Must occur within reasonable time after creation of contract. When is principal liable? authority third party wants to be able to rely on common indicator of authority. Appointing agent to position with that authority; or. Is it reasonable for third party to believe that agent had authority: nature and content of principal"s communication to third party, circumstances of communication, include type of business. Only principal"s conduct is relevant, not agents. Principal liable if: contract is within agent"s apparent authority and, third party actually relied upon apparent authority. Third party cannot enforce a contract if he/she knew or ought to. Or: ratified, agent usually is not personally liable because he/she clearly contracts on behalh of an.