Your company is contemplating entering into a contract with a consultant who will negotiate agreements with third party suppliers. Traditionally, this function has been handled by in-house employees, but the company would prefer to hire the consultant to works a part time independent contractor. Your boss needs to report to the Board of Directors about this new arrangement and its implications for the consultant's authority to enter into binding commitments on behalf of the company. Your boss need present this to the Board,

• how an agency relationship is formed
• the facts that would be relevant in determining the consultant's authority to act on behalf of the company should any dispute arise as to the consultant's scope of authority
• the relevance of the doctrine of respondeat superior and what factors are considered in applying that doctrine