Lecture-9.docx - Lecture 9*Principal A person who...

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October 11, 2016 Lecture 9 *Principal A person who authorized another, as an agent , to represent him or her. Agency – is the relationship that exists between a Principal (P) and an Agent (A) in which a Principal grants their power to an A to bind the P in K with someone else called a 3 rd party. P (power) A steps out with commission expense (K) 3 rd party How Agency Relationship is created: 1. Express agreement written or spoken agreement 2. Agency by conduct if a P acts like a person is their A The Ct. may agree. 3. Agency by estoppel where you have a history of a P/A relationship and 3 rd parties do not know that relationship has changed you can still be held to be A+P in a 3 rd party’s eyes. - 2 & 3: concept – Apparent authority – if a P makes it appear to 3 rd parties that you have authority to bind K you do not have that authority. 4. a) Agency of necessity or by law if you act to save lives or property of a P you will be paid for
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