Understanding Business and Personal LawChapter 19: Agency Relationships and Their TerminationChapter OverviewsReady to Learn? Agents act within the scope of their authority and contract with a third party on behalf of the principal. The contract that results is between the principal and the third party. The agent’s authority in negotiating the contract may be actual or apparent. The law provides for specific duties that the agent owes to the principal and that the principal owes to the agent. The usual rules that apply to the termination of a contract apply to the termination of an agency relationship. When you study this chapter, you will learn about the extent of agency authority, the nature of agency duties, an agent’s liability, and when agency relationships can be terminated. |  |
