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What Is the Purpose of Agency Law

What Is the Purpose of Agency Law
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Several problematic factual scenarios are repeated in the capacity to act, and the law has developed in response to them. The internal relationship of the agency may be terminated by mutual agreement. According to sections 201 to 210 of the Indian Contract Act of 1872, an agency can end in several ways: Think of John Alden (1599-1687), one of the most famous agents of American literature. He is said to have been the first person on the Mayflower to set foot on Plymouth Rock in 1620; He was a carpenter, cooper and diplomat. Its agency role – which is interesting here – was celebrated in Henry Wadsworth Longfellow`s “The Courtship of Miles Standish”. He was to court Priscilla Mullins († 1680), “Plymouth`s most beautiful daughter,” on behalf of Captain Miles Standish, a brave soldier too shy to propose. Standish turned to John Alden, his young and eloquent protégé, and begged Alden to speak on his behalf, unaware that Alden himself was in love with Priscilla. Alden accepted his captain`s task, although he knew he would lose Priscilla to himself, and went to see the lady. But Alden was so tied to language that his vaunted eloquence was overlooked, making Priscilla the cold object of Alden`s mission, and eventually leading him to flip the table on one of the most famous verses in American literature and poetry: “Why don`t you speak for yourself, John?” John eventually did so: the two married in Plymouth in 1623. Second, commercial agents and principals must not exploit asymmetries in their relationship as commercial agents in a way that frustrates the legitimate expectations of the other party.

In this regard, the question of whether conduct violates the obligation must be assessed holistically, taking into account all aspects of the relationship; The essential facts include the contractual and commercial leverage of each party, its objective intentions as set out in the contract and the business practices of the sector concerned. However, the initial axiom of this investigation must be that these are business relationships in which professionals are supposed to be independent and free to pursue their own interests. Fundamentally, it will not be an estimate aimed at achieving ontological fairness, a fair agreement or a balance between giving and receiving commercial agents and constituents. [14] Suppose Arthur is Paul`s agent, who is employed until October 31. The 1. In November, Arthur buys materials from Lumber Yard – as he has done since early spring – and debits Paul`s account. Lumber Yard, who doesn`t know that Arthur`s job ended the day before, bills Paul. Will Paul have to pay? Yes, because the termination of the agency was not communicated to Lumber Yard.

It seemed that Arthur was an authorized representative. This issue is addressed in Chapter 12 “Liability of the procuring entity and the representative; Termination of the Agency”. In 1986, the European Communities adopted Directive 86/653/EEC on self-employed commercial agents. In the United Kingdom, this has been transposed into national law in the Commercial Agents Regulations 1993. [12] Thus, agents and principals in a commercial agent relationship are subject to both the common law and the Commercial Agents Regulations. An agent is a person who acts on behalf of and on behalf of others after receiving and accepting a certain degree of authority to do so. Most organized human activities – and virtually all commercial activities – are carried out through agencies. No business would be possible without such a concept, not even in theory. For example, we could say, “General Motors builds cars in China,” but we can`t shake hands with General Motors. “The general,” as they say, exists and functions through agents. Similarly, partnerships and other commercial organizations rely heavily on agents to manage their activities. In fact, it is no exaggeration to say that the ability to act is the cornerstone of the organization of companies.

In a partnership, each partner is a general representative, while under corporate law, officers and all employees are representatives of the company. An agent is someone who acts on behalf of another. Many transactions are made by agents who act in this way. All corporate transactions, including those involving government organizations, are carried out in this way because the companies themselves cannot really act; they are legal fictions. Agencies can be created explicitly, implicitly or apparently. Recurring issues in agency law include whether the “agent” is really one, the extent of the agent`s authority, and the obligations between the parties. The five types of agents include: general agent, special agent, sub-agent, agency associated with an interest and servant (or employee). The independent contractor is not an employee; Their activities are not specifically controlled by their client, and the client is not liable for social security, social security and other charges. However, it is not uncommon for an employer to claim that employees are independent contractors when in reality they are employees, and cases are often fought on the basis of the facts. In Watteau v. Fenwick,[6] Justice Lord Coleridge agreed with The opinion of Judge Wills on Queen`s Bench that a third party could hold personally liable a client he knew when selling cigars to an agent acting outside his authority.

Judge Wills noted that “the principal is responsible for all acts of the agent that fall within the authority normally entrusted to a representative of that nature, regardless of the restrictions imposed between the principal and the representative of that power of attorney.” This decision is strongly criticized and questioned[7], although it is not completely annulled in the United Kingdom. It is sometimes called “habitual authority” (but not in the sense used by Lord Denning MR in Hely-Hutchinson, where it is synonymous with “implicit real authority”). It has been explained as a form of apparent authority or “inherent agency power.” The Agency must be adopted retrospectively or granted in advance. In the first case, there must be tolerance on the part of the representative (whose recognition may be rightly implied) or explicit recognition. If the Agent has a real or obvious power of attorney, the Agent will not be liable for actions taken under that authority as long as the Agency`s relationship and the Client`s identity have been disclosed. However, if the agency is not or partially disclosed, the agent and client are liable. If the client is not bound because he does not have an actual or obvious power of attorney, the alleged vicarious agent is liable to the third party for the breach of the implied warranty of authorization. The mutual rights and responsibilities between a contractor and a representative reflect economic and legal circumstances. A business owner often relies on an employee or other person to run a business. Since in the case of a company, a company can only act through natural persons, the customer is bound by the contract concluded by the agent as long as the agent acts within the framework of the agency. Most agencies are under contract. Thus, the general rules of contract law dealt with in Chapter 8 “Contracts” govern the law of the Agency.

However, agencies can also be created without a contract, by arrangement. Therefore, three contractual principles are particularly important: the first is the requirement of consideration, the second for a letter and the third concerns contractual capacity. If an agency relationship exists, the client is also responsible for any injuries that the agent inflicts on other parties. These may include violations of a third party`s financial interests, emotional injury, or physical injury. In the areas of social needs, the courts have stated that an agency exists in the absence of an agreement. The agency relationship would then have been implied “by operation of law”. In most states, children can purchase the necessary items – food or medical services – on behalf of their parents. Long-standing social policy considers it desirable for the head of the family to provide for his relatives, and the courts will transfer the costs to the head of the family in order to ensure the well-being of relatives. The courts come to this conclusion on the assumption that the parent is the agent of the head of the family, so creditors can sue the head of the family for the debt. The agency`s principles also help protect the company`s shareholders.

Shareholders are the true owners of a company, who do not necessarily have to be directors. .

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