9:  Business organizations: Agency and partnership

Agency is a

In a typical agency relationship, there are two distinct

The agent who makes the contract is not a

There are four main ways of creating an agency relationship:

An express agency agreement is an agreement where

Apparent authority occurs when

Estoppel is a bar or a barrier that prevents a person from

Upon ratification, a contract is made

For ratification to be effective, there must be a

Agency by necessity occurs when

An agency can be terminated at

Duties of the agent

Rights of the third party:

some advantages to a sole proprietorship

disadvantage of the sole proprietorship;

A partnership is

A partnership does not have a

Partnerships can inadvertently be formed by estoppel,

When partnerships are presumed:

A partner is both the

each partner is liable for

because the partnership does not have a separate legal identity from the partners, the

New partners are not liable for any debts incurred

Retiring partners remain liable for

Partners are liable

Partnership agreements only allow

Upon termination of a partnership, assets will be divided as set out in the partnership agreement. If the agreement does not specify, assets of the firm must be applied in the following manner as per the Partnership Act:

A limited partnership is an arrangement used for allowing certain partners to limit their liability.

Limited liability partnerships (LLPs) are