B LAW422 Chapter Notes - Chapter 20: Apparent Authority
2 Feb 2016
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Chapter 20 agency & other methods of carrying on business. Creation of an agency relationship: actual authority cheques. Expressed agreement principal & agent enter into contract that sets out the terms, including scope & remuneration. May need to be in writing if over a year or sign. Listing agreement to sell house with real estate = express authority for agent to sell your house. Commercial representation agreement manufacturer of goods agrees to allow someone to enter into contracts with someone else to sell its clothes. Corporations officers & directors are agents: apparent authority. Appearance of authority: law, ratification accepts contract created by someone without. Must be clear it is a ratification through express or authority implied. The principal must be identified by the agent at time of contract creation. Principal must have capacity to enter into contract or. When is principal liable give ratification: balance of interests with principal with interest of third.
