Thorough Business Enterprises Outline Essay

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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…
Limitations – avoidability, foreseeability, certainty, liquidated 3. Other remedies – specific performance, injunction, rescission 3. Agency Law a. Agency Law – General i. R2d Agency §1 Definitions: Agency; Principal; Agent 1. (1) Agency is the fiduciary relation which results from the manifestation of consent by one person to another that the other shall act on his behalf and subject to his control, and consent by the other so to act. 2. (2) The one for whom action is to be taken is the principal. 3. (3) The one who is to act is the agent. ii. Fictitious legal entities can only act through agents iii. Agency law defines the relationship and responsibilities whenever an individual acts on behalf of a business iv. R2d of Agency 1. Most agency principles are not codified in statutes a. Instead they are incorporated by reference (Ex: RUPA § 104(a)) 2. This is the definitive statement on agency and is persuasive authority v. Employment relationships are the most common form of agency relationships b. Agency Law – Requirements i. Consensual Relationship 1. R2d Agency § 1 – Mutual manifestations of Consent; A agrees to act for, and under the direction and control of P 2. R2d Agency §15
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