Chapter 29 fin 3055

Chapter 29 fin 3055 - Chapter 29- Agency the outside...

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Chapter 29- Agency the outside relationship Principal liability for contracts Actual authority- An agent is authorized to act for a principal Implied authority- When a principal directs an agent to undertake a transaction, the agent has the right to do acts that are incidental to it, usually accompany it, or are reasonably necessary to accomplish it. Express authority- Conduct of a principal that, reasonably interpreted, causes the agent to believe that the principal desires him to do a specific act. Apparent authority- A situation in which conduct of a principal causes a third party to believe that the principal consents to have an act done on his behalf by a person purporting to act for him when, in fact, that person is not acting for the principal. Estoppel- Out of fairness, a person is denied the right to assert a claim. Ratification-When someone accepts the benefit of an unauthorized transaction or fails to repudiate it once he has learned of it, he is then bound by it Agent Liability for contracts
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This note was uploaded on 08/29/2011 for the course FIN 3055 taught by Professor Cgiles during the Spring '08 term at Virginia Tech.

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Chapter 29 fin 3055 - Chapter 29- Agency the outside...

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