BUSA 291 - Agency and 3rd parties

BUSA 291 - Agency and 3rd parties - Agency and 3rd parties...

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Agency and 3 rd parties Agency: relationship authorizing one party (agent) to act for and on behalf of another party (principle) - e.g. power of attorney - principle must have capacity to enter into agreement General or limited partnership: others could be held liable employee (agent) or independent contractor: - who provides tools - skill set high/low degree of skill - methods of payment completion of task - number of clients numerous or minimal Duties: - agent principle: inform, not to compete (e.g. real estate), good faith, work competently - principle agent: compensate (unless gratuitous – e.g. intern), not to interfere Principal: hiring an agent - disclosed: agent usually has no rights against 3 rd party o 3 rd party knows - partially disclosed: agent may enforce contract against 3
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Unformatted text preview: rd party o 3 rd party kind of knows-undisclosed: agent may enforce contract against 3 rd party o 3 rd party doesn’t know Authority:-actual: communication between principal and agent o express: written/spoken words of principal o implied: inferred from words/conduct manifested by agent-apparent: power conferred upon the agent by acts/conduct of principal that reasonably lead 3 rd party to believe agent has power Termination of agency:-termination of agency ends actual authority o by operation of law: apparent authority also ends without notice to 3 rd parties o by act of parties-apparent authority: let customers/3 rd parties know of termination o no longer liable...
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