Click your mouse anywhere on the screen to advance the text in each slide. After the starburst appears, click a blue triangle to move to the next slide.

Slides:



Advertisements
Similar presentations
Click your mouse anywhere on the screen to advance the text in each slide. After the starburst appears, click a blue triangle to move to the next slide.
Advertisements

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 19 Agency and Liability to Third Parties.
Objective 3.02 Understand agency law
CHAPTER 29 AGENCY: CREATION AND TERMINATION
Lecturer: Rowin Gurusami
Essentials Of Business Law Chapter 17 Agency McGraw-Hill/Irwin Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning Chapter 37 Agency Twomey Jennings Anderson’s Business Law and the Legal.
Business Law and the Regulation of Business Chapter 30: Relationship with Third Parties By Richard A. Mann & Barry S. Roberts.
Chapter 29 Agency Formation and Termination
Law for Business and Personal Use © South-Western, a part of Cengage LearningSlide 1 Chapter 21 Agency Law Chapter 21 Agency Law Creation and.
Click your mouse anywhere on the screen to advance the text in each slide. After the starburst appears, click a blue triangle to move to the next slide.
Click your mouse anywhere on the screen to advance the text in each slide. After the starburst appears, click a blue triangle to move to the next slide.
Click your mouse anywhere on the screen to advance the text in each slide. After the starburst appears, click a blue triangle to move to the next slide.
Copyright © 2004 by Prentice-Hall. All rights reserved. PowerPoint Slides to Accompany BUSINESS LAW E-Commerce and Digital Law International Law and Ethics.
© 2010 Pearson Education, Inc., publishing as Prentice-Hall 1 AGENCY FORMATION AND TERMINATION © 2010 Pearson Education, Inc., publishing as Prentice-Hall.
LEARNING UNIT 5 LAW OF AGENCY. AGENCY An agreement 1 party another party (agent) performs (principal) a task Contract of MandateAgency.
Copyright © 2004 McGraw-Hill Ryerson Limited 1 PART 4 – FORMS OF BUSINESS ORGANIZATION  Chapter 15 – Law of Agency Prepared by Douglas H. Peterson, University.
Agency Law Objective 3.02 Understand agency law. What is agency law? Area of law dealing relationships created between two parties in which the principal.
Agency Law & Business Entities Chapters in Text Book.
Agency Law The first step in understanding employment law is understanding what an agent is. Agency law also complements our understanding of both contract.
CHAPTER 24: BASIC PRINCIPLES OF AGENCY. Learning Objectives: General Agency Principles Duties of the Agent Duties of the Principal Termination:  By Operation.
1. 2 Creating an Agency Relationship Agency is a relationship in which the agent agrees to perform a task for, and under the control of, the principal.
19 Agency © Oxford University Press, All rights reserved.
Bailment “the transfer of possession, but not the title of personal property by one party to another, under agreement”
Agency Formation and Termination. FOCUS Do you need an agent? List situations that you would want an agent to deal for you.
1 MAN-3 Erlan Bakiev, Ph. D. Agency Formation and Duties MAN-3 Erlan Bakiev, Ph. D. Agency Formation and Duties.
Agency Chapter 17. Agency Relationship between two parties in which one party (agent) agrees to represent or act on behalf of another party (principal)
COPYRIGHT © 2010 South-Western/Cengage Learning..
2-1 Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd PPTs to accompany Barron, Fundamentals of Business Law 7Rev This is the prescribed textbook.
Agency Law. “If you want something done right, do it yourself.” “Many hands make light work.” Anonymous folk sayings.
© 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license.
Copyright © 2004 by Prentice-Hall. All rights reserved. PowerPoint Slides to Accompany BUSINESS LAW E-Commerce and Digital Law International Law and Ethics.
CHAPTER PowerPoint ® Presentation Prepared By Susan McManus, Mount Royal College CHAPTER PowerPoint ® Presentation Prepared By Susan McManus, Mount Royal.
AGENCY The Agency Relationship. Creation of Agency An Agreement of two parties that on party (the agent) will act for the benefit of the other (the principal)
Agency and Employment Law Chap 21 – Agency Law Chap 22 – Employment Law Chap 23 – Unions & the Employment Relationship Chap 24 – Discrimination in Employment.
Topic 11 Business Law. Topic 11: Learning Objectives Describe and distinguish between the elements of agency, suitability, fiduciary responsibility and.
Copyright © 2004 by Nelson, a division of Thomson Canada Limited CANADIAN BUSINESS AND THE LAW Second Edition by Dorothy Duplessis Steven Enman Shannon.
Diploma of Financial Services (Banking) FNSACCT404B Make Decisions in a Legal Context Lecture 2.
BELL QUIZ ON CHAPTER 18 Name one thing an agent can negotiate.
Slides developed by Les Wiletzky Wiletzky and Associates Copyright © 2006 by Pearson Prentice-Hall. All rights reserved. PowerPoint Slides to Accompany.
P A R T P A R T Agency Law The Agency Relationship Third-Party Relations of the Principal and the Agent 8 McGraw-Hill/Irwin Business Law, 13/e © 2007.
AGENCY. Definition of Agency A fiduciary relationship. –Trust and confidence Mutual agreement of two persons –that one person (agent) will act on the.
Chapter 18 Agency Law. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.18-2 The Agency Relationship Agency relationships are formed.
Chapter 19 Agency Relationships and Their Termination.
COPYRIGHT © 2011 South-Western/Cengage Learning. 1 Click your mouse anywhere on the screen to advance the text in each slide. After the starburst appears,
1 LAW OF AGENCY HOSPITALITY LAW. 2 Duties of the Agent 1. Exercise reasonable care in performing the duties 2. Cannot delegate tasks 3. Element of Trust.
Chapter 18.  A fiduciary relationship “which results from the manifestation of consent by one person to another that the other shall act in his behalf.
PowerPoint Slides to accompany The Legal Environment of Business and Online Commerce 4E, by Henry R. Cheeseman Chapter 13 Agency Law Prentice Hall © 2005.
McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 10 Agency and Employment Relationships.
29 - 1Copyright © 2004 by Prentice-Hall. All rights reserved. The Law of Agency The Law of Agency.
Law for Business, 17e, by Ashcroft and Ashcroft, © 2011 Cengage Learning 26.1 Law for Business, 17e by Ashcroft and Ashcroft Chapter 26: Nature and Creation.
© 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license.
Copyright © 2010 South-Western Legal Studies in Business, a part of South-Western Cengage Learning. and the Legal Environment, 10 th edition by Richard.
LAW OF AGENCY.
Chapter 14 notes Sunday, July 03, 2016Sunday, July 03, 2016Sunday, July 03, 2016Sunday, July 03, 2016.
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright.
CHAPTER 33 Life and Death of a Partnership
Chapter 25: Agency Formation and Duties
Agency Law Objective 3.02 Understand agency law.
This is the prescribed textbook for your course.
Introduction to Agency and Business Organizations
AGENCY FORMATION AND TERMINATION
Objective 3.02 Understand agency law
Chapter 25 Agency Relationships
Objective 3.02 Understand agency law
Objective 3.02 Understand agency law
Common Law Rules in Employer-Employee Relations
PowerPoint Slides to accompany The Legal Environment of Business and Online Commerce 5E, by Henry R. Cheeseman Chapter 19 Agency Law Prentice Hall © 2007.
Presentation transcript:

Click your mouse anywhere on the screen to advance the text in each slide. After the starburst appears, click a blue triangle to move to the next slide or previous slide.

Quotes of the Day “If you want something done right, do it yourself.” “Many hands make light work.” -- Anonymous folk sayings

Creating an Agency Relationship  Agency is a relationship in which the agent agrees to perform a task for, and under the control of, the principal.  To create an agency, there must be: A principal, An agent, Who mutually consent that the agent will act on behalf of the principal, and Be subject to the principal’s control, Thereby creating a fiduciary relationship.

Requirements for Agency  Consent, control and a fiduciary relationship are required.  Elements not required for an agency relationship include: A written agreement (unless the business of the agent requires a written contract). A formal agreement (acting like agent and principal is enough to establish agency). Consideration (an agent does not have to be paid).

Duties of Agent to Principal  Duty of Loyalty-- The agent: must act for the benefit of the principal. may not receive outside benefits without approval of the principal. can neither disclose nor use for her own benefit any confidential information. is not allowed to compete with his principal within the scope of the agency business. may not act for two principals whose interests conflict. may not become a party to a transaction without the principal’s permission. may not engage in inappropriate behavior that reflects badly on the principal.

Other Duties of an Agent  An agent must obey her principal’s instructions, unless illegal or unethical.  Agent must act with reasonable care. An agent with special skills is held to a higher standard because she is expected to use those skills.  Agent must give accurate information. An agent has a duty to provide the principal with all information in her possession that she has reason to believe the principal wants to know.

Principal’s Remedies When the Agent Breaches a Duty  The principal can recover damages caused by the agent’s breach.  The agent must refund any profits made from the agency, if he breaches his duty of loyalty.  The principal may rescind a transaction with an disloyal agent.

Duties of Principal to Agent  Duty to Reimburse the Agent for Reasonable Expenses A principal must also indemnify an agent for an unauthorized purchase if the agent reasonably believed he was authorized and the principal received a benefit.  Torts Committed by the Agent A principal must indemnify an agent for tort claims brought by a third party if the principal authorized the agent’s behavior and the agent did not realize he was committing a tort.

Duties: Principal to Agent (cont’d)  Contracts Entered into by the Agent The principal must indemnify the agent for liability she incurs as a result of a contract on the principal’s behalf, including attorney’s fees and reasonable settlements.  Duty to Cooperate Cannot unreasonably interfere with the agent’s ability to accomplish his task. Unless the contract provides otherwise, the principal may compete with her agent. Principal must perform her part of the contract.

Terminating Agency  There are five basic ways an agency relationship is terminated by the parties: By completion of the agreed term. By completion of the agreed purpose. Mutual agreement, no matter what the previous agreement was. In an agency at will, either party can terminate at any time, for any reason. Wrongful termination – either party can terminate relationship, but the wrongful party may have to pay damages.

Other Causes of Agency Termination  Principal or Agent Can No Longer Perform Required Duties Loss of Qualification, Bankruptcy, Death or Incapacity of the Principal or Agent, Disloyalty of Agent  Change of Circumstances Loss or Destruction of Subject Matter, Change of Law

Effect of Termination  Termination of the agency ends the agent’s power to act on behalf of the principal.  Principal’s duty to reimburse expenses of the agent ends with the end of the agency.  Confidential information remains confidential and unusable, even after the end of the agency.

“Once again, the subject is tradeoffs. You can accomplish more if other people do things for you. On the other hand, you may face liability for their actions.” “Once again, the subject is tradeoffs. You can accomplish more if other people do things for you. On the other hand, you may face liability for their actions.”