Management and Organizational Studies 2275A/B Chapter Notes - Chapter 13: Apparent Authority, Fiduciary

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

Document Summary

Agency is the relationship between two persons that permits one person, the agent, to affect the legal relationships of another, known in law as the principal. These legal relationships are as biding on the principal as if that person had directly entered them herself. Agency is about one person representing another in such a way as to affect the latter"s relationships with the outside world. Agency relationships, like contractual relationships in general, operate for the most part with few difficulties agents simply represent principals in transactions with others. The fact that parties use agents instead of dealing with each other face to face can result in complications and questions. There are two key relationships at play in an agency situation. The first is the relationship between the agent and the principal and the second is between the principal and the party with whom the agent does business.