馃攳
Agent Authority to Contract for Principal - YouTube
Channel: unknown
[0]
So when is a business bound bar or
[3]
obligated by the agreements or
[6]
contractual relationships entered into
[8]
by the businesses agents or employees?
[11]
Well the answer to that question depends
[14]
on the concept of authority, so when an
[17]
individual represents a business, okay,
[20]
when the employee goes out and
[21]
undertakes any activity on behalf of the
[24]
business they are representing the
[26]
business in that fashion show so they
[28]
are acting under some type of authority.
[31]
Okay.
[32]
The first authorities actual authority
[34]
that is the amount of authority
[36]
expressly granted to the employee or
[39]
agent by the business, okay, so you have a
[42]
an employment contract that describes
[44]
the job that the employee is to do or
[47]
outlined specific tasks or functions
[50]
that the employee is going to undertake,
[51]
well in that case that would be the
[53]
actual authority the authority granted
[56]
to the employee by the business. Now a
[58]
related concept is implied authority
[61]
this is authority that the agent or
[63]
employee has but it's not expressed it's
[67]
not written or put out to the world that
[69]
the employee has this level of authority
[71]
rather it's implied from any number of
[75]
things that exist in the employee
[77]
employer relationship. For example, say an
[81]
employee has the title of president of
[83]
operations well it is implied from that
[86]
title from the the employees name in the
[91]
business their title that they can
[93]
undertake certain tasks a president of
[96]
operations would be able to undertake
[98]
anything any contractual agreements
[101]
related to operations. Now it would be
[104]
reasonable for an outside person dealing
[106]
with this employee to enter into a
[108]
contract and expect that that employer
[111]
agent has that level authority, so that
[114]
level of authority is again implied
[117]
authority can also be implied from some
[119]
level of past dealings or course of
[122]
performance with the business or a third
[125]
parties awareness that this employer
[127]
agent has acted in a certain manner
[130]
with other suppliers or other third
[133]
parties interacting with the business.
[135]
Let me give you an example, I'm an
[138]
employee of the business and approach a
[142]
third party about purchasing some
[144]
supplies for the business a large supply
[146]
contract, well if we had prior dealings
[150]
and I represented the business in the in
[152]
the supplier entered into this type of
[155]
agreement with me before it would be
[157]
reasonable for them to believe that I
[159]
had that authority, so from our past
[162]
course of being that even if I don't
[165]
have that authority
[167]
it could be implied I don't have that
[169]
Express authority it could be implied
[171]
from our prior course of dealing that I
[173]
have this level of authority and can
[175]
enter into this agreement. Okay. It could
[178]
also be the situation where this
[181]
supplier has has or as a way or it has
[185]
received information that I've entered
[187]
into a similar type of deal or
[189]
transaction with another third party
[191]
with another vendor or supplier in that
[193]
case again it would be reasonable for
[195]
the new belief that I have that level of
[197]
authority in it and it would be implied
[199]
from that course of dealing. Okay. Now and
[203]
then the last one is apparent authority
[205]
a parent authority is when I express to
[209]
a third party, okay, as the employer agent
[211]
I express to a third party that I do
[213]
indeed have this level of authority and
[215]
given whatever circumstances is this it
[219]
is reasonable for that third party to
[221]
believe me, to believe that I have that
[225]
level of authority to transact business
[227]
or enter into an agreement
[229]
on behalf of business. So those are the
[232]
three situations where the business will
[234]
be liable for or bound by, obligated by,
[238]
the agreement entered into by the
[241]
employee or agents under actual
[243]
authority, implied authority, or apparent
[246]
authority.
Most Recent Videos:
You can go back to the homepage right here: Homepage