LAW 529 Chapter Notes - Chapter 20-24, 14-17: Limited Liability Partnership, Canada Business Corporations Act, Fiduciary
26 Nov 2016
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Chapter 20: how to conduct business: the law of agency is at the heart of commercial life, agent: the person acting on behalf of another, principal: the person or legal entity on whose behalf they are acting. Actual authority: the agreement between the agent and principal describing what the agent is permitted to do on behalf of the principal (e. g. , a real estate listing agreement). Apparent authority: the representation (express or implied) by the principal/agent to third parties of the agent"s authority to act on the principal"s behalf. Deemed authority: agency relationships deemed to exist as a matter of law (e. g. , partnerships, statutory agents). Retroactive authority: ratification (confirm) by a principal of the earlier actions of another party acting on its behalf (ex: pre-incorporation contracts). The ratification renders the actions of the agent enforceable (clear) as if they were originally authorized. The ratification can be express or implied; The agent must identify the principal at the time of the action.
