BUSI 3705U Study Guide - Final Guide: Fiduciary, Apparent Authority, Uberrima Fides
Document Summary
An agent might enter into sales contracts with clients on behalf of the principal. Delegaion of authority needs formal recogniion with respect to an acionable claim arising from an alleged agency relaionship. Agent relaionships operate with few diiculies bc they simply represent principals in transacions with others. Third party is an outside party with whom an agent conducts business on behalf of a principal. Law of agency is derived largely from tort and contract law. Statutory regulaion apply to the conduct of real estate agents + mercanile agent. Individual selling a house and lawyer relaionship = up-front payment of a retainer. Museum is allowed to sell any of his painings as long is adheres price list = agency by agreement. Existence of a contract between principal and third party is determined by = extent of the agent"s actual authority. Agent"s actual and apparent authority bind the principal. Implied authority of an agent may be intuiively deduced by agent"s posiion.
