Management and Organizational Studies 2275A/B Study Guide - Midterm Guide: Kodak, Umber, Adverse Possession

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Prof

Document Summary

Agency represents and acts on behalf of a principle. A service performed by an employee, an independent agent (eg. travel agency) or gratuitously. Company is vicariously liable for its employees (agent) actions even if they are fraudulent company must pay compensation to the client dealing with the agent. Agency relationship usually created through a contract agency agreement: between agent and principle, not the contracts that agents enter into on behalf of principle. Contract covers: authority, duties, nature of payment. Agent: agrees to act on behalf of principle. Power of attorney: agency agreement under seal and writing. Agency contract does not have to be in writing or seal (unless agent be required to seal) , unless required by statute of frauds: under bill of rights- granting of authority must be in writing. Basic rules of contract apply to agency contracts (consensus, consideration etc. ) Gratuitously= contract is binding (on principle and agent)