1. Business Law – General

a. Nexus of Contract Theory

i. Business entities are a nexus of contracts where parties indirectly contract with each other by contracting with the fictitious legal entity

1. Advantages of using business entities

a. Simplification of formation and management of contractual relationships

b. Reduced transaction costs

2. Parties involved

a. Suppliers of physical capital (build ings, land, etc.)

b. Suppliers of financial capital (creditors)

c. Suppliers of labor (employees)

d. Suppliers of goods and services …show more content…

3. Consent may be express or implied

4. There does not need to be an intent to form an agency relationship

5. Agency may be unilaterally terminated by one party withdrawing consent

a. However the party who terminates the relationship may be liable for K breach damages

ii. No writing or disclosure requirements

iii. Usually agency relationships are contractual, but they may be gratuitous

1. Gratuitous relationships can transform into contractual relationships through promissory estoppel / detrimental reliance

c. Agency Law – Fiduciary Relationships

i. Fiduciary Relationships – General

1. R2d Agency §1 – Agency relationships are fiduciary relationships

2. Fiduciary duties run from A to P

ii. Duties of Agent / Fiduciary

1. R2d Agency §379 Duty of Care and Skill i. (1) Unless otherwise agreed, a paid agent is subject to a duty to the principal to act with standard care and with the skill which is standard in the locality for the kind of work which he is employed to perform and, in addition, to exercise any special skill that he has. ii. (2) Unless otherwise agreed, a gratuitous agent is under a duty to the principal to act