LAW 603 Study Guide - Midterm Guide: Law Of Agency, Apparent Authority, General Partnership
28 Feb 2015
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Chapter 20: agency and other methods of carrying on business: basic rules of agency, risk management issues, business relationships in which agency issues arise. Agent (a) person who represents someone else for a specific purpose. Principle (p) person whom an agent represents for a specific purpose. Third party (tp) person other than a and p: ex: real estate agents, insurance agents, stockbrokers, partners of a partnership. P has an agent contract with agent and agent agrees to represent him. A then makes a contract with tp on behalf of principal. P then has the obligation to perform contract. Creation of an agency relationship: by express agreement (with actual authority, by apparent authority, by law (e. g. general partnership) P actually authorizes the a to act on its behalf. An agency longer than 1 year must be in writing (statue of frauds) For an a to have authority to sign cheques a must have written agreement: ex.
