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Agency Law: Part I (Agency Relation (Agent (Manager of the business. (As a…
Agency Law: Part I
Agency Relation
Agent
Manager of the business.
As a legal substitute for the principal, the agent must subordinate her personal interests.
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Principal
Owner of the business.
If the agent promises something to a third party, then the principal is liable.
Types of Authority
Actual Authority
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Implied
Exists when the principal silently acquiesces to the agent’s conduct as being within the scope of employment.
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Inherent Authority
Exists when the agent has no actual or apparent authority AND the principal gave express authority for a specific act or contract.
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