COMM231 Chapter Notes - Chapter 13: Apparent Authority, Law Of Agency, Fiduciary
14 Feb 2016
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Document Summary
This chapter explains the concept of agency and its relevance to business, including formation of the agency relationship, the duties and liabilities of the various parties in the relationship, and ending the relationship. This is important material as it forms the basis of relationships in partnership and corporate law. Since fiduciary duties are very important in agency law, some of this material will already familiar to you. You are responsible for everything in the chapter, however key concepts to focus on are: understand the terms agency, agent and principal, and the two figures at page 288 and 289. Understand also the difference between actual and apparent authority of an agent: consider why a business would use an agent to act on its behalf when there are considerable risks to the business. How can the risks be managed: realize that there are various ways an agency relationship can come into being. This is where fiduciary duties are particularly important.
