Management and Organizational Studies 2275A/B Chapter Notes - Chapter 13: Secret Profit, No Authority, Estoppel

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

Document Summary

Actual authority: power of agent that derives from either express/implied agreement: express authority written/oral agreement granted by principal to agent, authority agent actually has. Tuesday, october 27, 2015: very broad or very narrow, for only 1 transaction of for several, for short, long, or indefinite period of time, very formal or very informal. Eg: power of attorney vs oral instructions. In agency by estoppel and agency by ratification, agent has no authority to do what he wants. 2 doctrines distinguished by whether principal has conducted himself in misleading way: agency by estoppel principal forced to be bound by unauthorized contract. Principal has represented someone as his agent. Must live w/ consequences when agent purports to act on his behalf: agency by ratification principal makes own decision whether to adopt contract according to his own best interests. Agent may be out of line but not due to any fault of/misrepresentation by principal. Summary of creation of agency and agent"s authority.