Agency.

During the next department meeting, your supervisor wants to review the concept of agency law with the staff. Your supervisor wants the staff to understand the importance of the legal issues related to business dealings in which an agent acts on behalf of a principal. To ensure that everyone comes prepared for the meeting, your supervisor has e-mailed each staff member the topics that will be discussed at the meeting. You are responsible for leading the discussion on the topics that you were e-mailed.

To prepare for the meeting, you decide to write down your thoughts and ideas on the topics that you were assigned. You include referenced information to substantiate your thoughts on the topics. The topics you were assigned to lead discussion on during the meeting include the following:

  • Identify and discuss the 3 types of principals that can exist (disclosed, undisclosed, and partially disclosed principals).
    • Include a hypothetical example of situations that would include each type of principal.
  • Identify and discuss some of the duties that an agent owes to the principal.
  • Discuss your opinion on whether you believe it is fair to the third party to have a situation in which there is an undisclosed principal and the third party believes he or she is dealing directly with the principal party rather than an agent. Be sure to provide supportive reasoning for your opinion.

Agency

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