BU231 Chapter Notes - Chapter 17: Fiduciary, Apparent Authority, Franchising
Document Summary
Agent: a person acting for another person in contractual relations with third parties. Principal: the person on whose behalf the agent is. Dependent agent: an agent who acts exclusively, or mostly, for a single person. Independent agent: carries on an independent business and acts for a number of principals: think lawyers, stockbrokers. Commission agent: sells on behalf of a principal to third parties and receives compensation through commissions. An agent"s power to contract on behalf of their principal is limited to the capacity that the principal possesses. Agency agreement: agent undertakes to act on behalf of the principal. If beyond one year, must be in writing to be enforceable: should define limits of the agent"s authority, power of attorney: authorizes the agent to sign documents on behalf of the principal. Other ways to create an agency relationship: can be created through estoppel - leading someone to believe something, can be created retroactively. Duties owed by an agent to the principal.
