BUSI 3705U Chapter 13: Chapter 13.docx
Document Summary
Agency a relationship that exists when one party represents another in the formation of legal relations. Agent a person who is authorized to act on behalf of another. Principal a person who has permitted another to act on her or his behalf. Law of agency- law governing the relationship where one party, the agent, acts on behalf of another, the principal. Actual authority the power of an agent that derives from either express or implied agreement. Apparent authority the power that an agent appears to have to an outsider because of conduct or statements of the principal. Express authority written or oral authority granted by a principal to an agent. Implied authority agent"s authority that is present by implication only. Agency by estoppel - an agency relationship created when the principal acts such that third parties reasonably conclude that an agency relationship exists. Onus is on the principals to inform outsiders when a person cease to be their agent.
