MCS 3040 Study Guide - Midterm Guide: Due Diligence, Corporate Law, Payment Service Provider

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 3040
• Professor: Joseph Radocchio

Document Summary

Agency: relationship that exists when one party represents another party in the formation of legal relations. Agent: person who is authorized to act on behalf of another. Principle: person who has permitted another to act on her behalf. Example: sports agent negotiates million dollar deal on behalf of a hockey player. Outsider: party with whom the agent does business on behalf of the principle. Law of agency: law governing the relationship where one party, the agent, acts on behalf of another, the principle. Not all employees are agents for the business that employ them. A clerk/typist is not but if asked to take money and purchase a gift for a departing employee in that situation he is an agent for the employer. Actual authority: power of an agent that derives from either express or implied agreement: express authority: written or oral authority granted by principle to agent.