...Business Law I MGMT235-1401A-05 January 15, 2014 For this discussion board post we are to discuss the topics of Agency Law and the different principals and ideas that go along with it. There are three types of principles that exist; they are disclosed, undisclosed, and partially disclosed principals. A disclosed principle refers to when there is a 3rd party involved. The person/people are not hidden by the company to the person or persons that they are working with. For example, Let’s say you have a bill and you have not paid it, the company that you had the bill will originally may turn your account over to another collection agency and they would in turn contact you and let you know that your account has been turned over to their company to collect the debt on behalf of the original company. When it comes to an undisclosed principle, it’s just that, not disclosed, no information is given on that agent. They still are working either on their own behalf or through a company and do not want their information public. For example, if I was under an undisclosed principle I would not go into a meeting and say, “I am here on behalf of Yellowstone National Park”. This information would not be given out. For a partially disclosed principle, at the time of the deal, the person may know that the other person he is dealing with is portraying themselves as an Agent but does not know who the main source or principal is. For example, if I am speaking on behalf of a national park...
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...Chapter 10: Agency * What is an agent? * The primary function of an agent is to make contracts on behalf of the principal If the party wishes to sue, they must sue the principal and not the agent: International Harvester Co of Australia Pty Ltd v Carrigan’s Hazeldene Pastoral Co (1958) * Indicators of an agency relationship: * Does the 'agent' keep the profits it makes or does it have to pay them across to the principal? * Is the ‘agent’ paid a commission? o Does the ‘agent’ have an obligation to account to the principal for sales? * Potter v Customs and Excise Commissioners [1985] Functions of an agent: * Most common function: to bring about a contractual relationship between the principal and a third party * A person who has no authority to make contracts on behalf of his/her principal may be an agent if he/she has authority to: o receive money on behalf of principal o pay money on behalf of principal * make representations for which principal is responsible o receive representations on behalf of principal o Petersen v Moloney (1951) 25 ALJR 566 (High Court) Common commercial relationships in agency: * Employer/Employee: not all employees are agents because not all employees have the authority to affect their employer’s legal position with respect to 3rd parties. * Independent contractor: may be an agent with wide authority, limited authority or not an agent at all: Perpetual trustees...
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...INTRODUCTION Agency has been defined as a legal relationship that exists between two persons where one called the agent is considered in law to represent the other called the principal in such a way as to affect the principal’s legal position in relation to other parties. This presentation will explore the below: • Definition of agency • Creation of agency • Effects of contracts made by agents • Rights and duties between principal and agent • Termination of agency DEFINITION OF AGENCY An agent is a person employed to do any act for another or to represent another in dealings with third persons. Cap 23 Laws of Kenya is the law that governs Agency law in Kenya. The law of agency is based on the common law rules developed by English courts and rulings made by other courts in the Commonwealth. On March 14th 1978, Kenya adopted the convention on the law applicable to agency. In Timmins (Town) v Brewers' Warehousing Co. Ltd (1962) Schroeder, J.A. stated, inter alia, that "the outstanding feature of an agent's employment in a legal sense is that he is employed primarily to bring about business relations between the principal and third persons, and this characteristic is perhaps the most distinctive mark of the agent as contrasted with others not agents who act in representative capacities". The law of agency prescribes the legal rules for determining- (a) How a person may become an agent; (b) The rights and duties between the agent and the principal; (c) The relations...
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...Agency Law 1. Agent is not a party, only representative to carry out almost all legal acts of principal. 2. Agent must have authority to represent. Relationship is normally contractual. a. Express authority ACTUAL: being set out/stated in words by principal, orally or in writing.超过一年或一年可能不能完成、买卖land/interest in land/business must written document即为power of attorney. b. Implication authority ACTUAL: • Authority被要求做things necessarily or normally incidental to acts that have been expressly authorized • Authority is given to agents employed in a particular capacity例如公司的经理 • Authority is customarily granted to agents employed in a particular market or type of business c. Apparent authority/ostensible authority名义代理 • Representation was made to third party that agent had authority to enter into the kind of trans in question • Representation was made by a person with actual authority to manage relevant aspects of 公司生意 • Third party was induced to enter the transaction by the representation and relied on it • The company in fact had the power to enter into the type of trans in question 3. Ratification a. If agent act without authority or outside the limit of actual authority, principal can assent批准by ratificaiton b. Ratification must be made within reasonable time and do not prejudice the interest to third party. c. No ratification of unauthorized act if principal is undisclosed. Principle is undisclosed when the third party not contemplate预期 of being legally bound to...
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...------------------------------------------------- CHAPTER 17-AGENCY LAW TRUE/FALSE 1. Larry decided to relocate to Germany. Larry hired Happy Homes, Inc. to find a buyer and contract for the sale of his house in the U.S. The agency relationship between Larry and Happy Homes must be evidenced with a written agreement. 2. If Denise is hired to work as a cashier, she has the implied authority to do acts reasonably necessary to carry out her job. 3. Erica's supervisor told her to arrange for a conference room at the Kelly Inn. Erica has express authority to contract for the room. 4. An agent must obey all instructions of the principal. 5. Jolene hired Lacy to find a buyer for her house. Adam was interested in buying the house. If both Jolene and Adam agree, Lacy, a real estate agent, may represent both parties. 6. As a general rule, an agent is liable on contracts entered into on behalf of a fully disclosed principal. 7. You cannot be held liable for the actions of your agents if the agents are violating your instructions. 8. If apparent authority is present, the principal is liable for even the unauthorized acts of the agent. 9. The death of an agent automatically terminates an agency relationship. 10. Generally, either party to an agency relationship has the power to terminate it at any time. 11. Rob agrees to act as an agent...
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...Executive Summary Various issues in the common law arise when agents make contracts on behalf of principals. Should a principal be bound when his agent makes a contract on his behalf that he would immediately wish to disavow? The tradeoffs resemble those in tort, so the least-cost avoider principle is useful for deciding which agreements are binding and can unify a number of different doctrines in agency law. In particular, an efficiency explanation can be found for the undisclosed-principal rule, under which the agent's agreement binds the principal even when the third party with whom the contract is made is unaware that the agent is acting as an agent. Agency deals with situations in which one person -- the principal-- uses another person -- the agent-- to act on his behalf. Sometimes the acts of the agent are attributed legally to the principal, sometimes not. Clearly, agency is central to business dealings. No owner of a business can do everything himself; he must delegate some things to agents, and this is true not only of large corporations but of sole proprietorships that have employees who work for the owner. In partnerships, the partners act as each other’s agents. And in corporations, the shareholders are completely unable to act on their own behalf; they delegate authority to a board of directors, who in turn delegate authority to the officers of the corporation. In this report we will discuss the formation and types of agencies with a detail analysis of the evident problems...
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...Law Enforcement Agencies and Systems Law Enforcement Agencies and Systems Law enforcement agencies and systems have shown consistent changes over the centuries and is evolving over time. Even though “modern policing in the U.S. is still based on the nineteenth-century British model of the Metropolitan Police of London, a tremendous amount of specialization has evolved in today’s sphere of policing, especially among federal, state, and local agencies” (Peak, 2015, p.277). In this assignment, I will discuss similarities and differences between the modern law enforcement agencies and systems in the northeast, southeast, and western regions; as well as the urban and rural areas. Northeast, southeast, and western regions The criminal justice agencies over time were developed to respond locally to each regions particular social problems. In earlier times, a place such as New England, who had a sheriff that provided law enforcement, was an unskilled worker who was appointed the job (Conser, 2005). This was due to the lack of social problems because it was the norm to be obedient to authority figures and containing public order was not an issue. Churches and families; as well as the community, was all that was necessary I order to maintain social order and “there was little need for the formal agencies of social control that we know today” (Conser, 2005, p.53). Pennsylvania was also similar with New England with their religious beliefs and influences...
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...Purchasing Officer's Personal Liability PROC 5810 Webster University Online 22 July 2013 Abstract If you research the internet, there are massive amounts of information on how the law handles purchasing agent actions when acting upon directions from their principal, but what happens when the agent acts alone, is the agent held responsible? What about signature authority or when the agent is careless and takes on actions that he/or she has no right to perform. Can a purchasing officer be held personally responsible for actions outside the knowledge of his principle? Purchasing officers (agent) are employees who buy supplies and materials for the companies they work for. They dicker over the smallest costs and make decisions for the company on materials and supplies that would benefit the company. Agents are also in charge of managing contracts and ensuring that they are completed in time. Purchase agents have to be educated with enough knowledge to make the right decisions on handling the purchasing, inventory levels, suppliers and the economics which will enable them to make the important decisions to help a company succeed. Contracts involve negotiating for bids, being technical in your knowledge and being able to access what products are needed is part of what makes the agent the expert and their field. Purchasing agents are expected to be able to meet with vendors and to be able to iron out the problems, so as not to cause harm to the company. The control...
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...involving continuity of service. In other words, an agent who is given specific authority and specific instructions for a specific purpose is called special agent. Jane’s contract, which gives her authority to act on their behalf for the purchase of all ladies fashion ranges fulfills three elements-consent, control and on behalf of-of an agency relationship indicating that the case satisfies the definition of agency relationship between the Jane and her employer. Jane is supposed to be regarded as a special agent since the contract specifically mentions the range of her authority which is all ladies fashion ranges. We should pay attention that, as generally, the principal will not be liable for third parties who deal with special agents in areas outwith their specific instructions. 2. Before an agency can be formed, both the principal and the agent should have the legal capacity and actually exist. Generally, a person can do anything through an agent that he or she could legally do personally. The ways in which an agency can come into being: 1) Agency created by express appointment. In common with other types of contract, an agency can be created expressly – either in writing or orally. Examples of...
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...Law of agency From Wikipedia, the free encyclopedia Jump to: navigation, search The law of agency is an area of commercial law dealing with a contractual or quasi-contractual, or non-contractual set of relationships when a person, called the agent, is authorized to act on behalf of another (called the principal) to create a legal relationship with a third party.[1] Succinctly, it may be referred to as the relationship between a principal and an agent whereby the principal, expressly or impliedly, authorizes the agent to work under his control and on his behalf. The agent is, thus, required to negotiate on behalf of the principal or bring him and third parties into contractual relationship. This branch of law separates and regulates the relationships between: • Agents and principals; • Agents and the third parties with whom they deal on their principals' behalf; and • Principals and the third parties when the agents purport to deal on their behalf. The common law principle in operation is usually represented in the Latin phrase, qui facit per alium, facit per se, i.e. the one who acts through another, acts in his or her own interests and it is a parallel concept to vicarious liability and strict liability in which one person is held liable in criminal law or tort for the acts or omissions of another. In India, section 182 of the Contract Act 1872 defines Agent as “a person employed to do any act for another or to represent another in dealings with third persons”...
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...Which key agencies have suggested criteria for determining if a worker is an employee or an independent contractor? 4. What is the most important factor in determining a worker’s classification? 5. What are the consequences of misclassifying an employee? 6. Various federal and state agencies have established standards for determining worker status. Below are there of the more important: a. IRS common law criteria b. Darden Factors c. FLSA criteria 7. How do the standards above overlap? 8. [pic]Cases Classifications of Workers – there are two general categories of workers: independent contractor or employee. Independent Contractor: (read to Section Form SS-8) Definitions vary based on specific regulations or laws. However, in general, the “payer” has the right to control or direct only the result of the work done by an independent contractor, not the means and methods of accomplishing the result. Misclassification is common and the consequences can be significant for an organization (payer). In most cases, a worker’s status is obvious, but can be complicated. Other Worker Terms Contingent or Temporary Workers: Worker’s job with an employer is temporary, sporadic, or differs in any way from the norm of full-time employment. Individual still likely to be an employee, not a contractor. Have most of the protections of permanent employee such antidiscrimination, safety, and Wage and Hour Laws. ...
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...AGENCY RELATIONSHIPS ( Agency: A fiduciary relationship that results when one person (the principal) manifests her consent that another person (the agent) will act on her behalf and subject to her control, and the agent manifests his consent to so act. ( Fiduciary: A person who undertakes to act on behalf of and primarily for the benefit of another. ( Fiduciary Duty: A duty arising from the trust and confidence placed in a fiduciary by those on whose behalf and for whose benefit she acts. EMPLOYER-EMPLOYEE RELATIONSHIPS ( Employee: A person (1) who works for, and receives payment from, an employer, (2) whose working conditions and methods are controlled by the employer, and (3) for whose acts and omissions occurring in the scope of employment the employer is liable. ( Independent Contractor: A person (1) who works for, and receives payment from, an employer, (2) but whose working conditions and methods are not controlled by the employer, and (3) for whose acts and omissions the employer is not liable. DETERMINING EMPLOYEE STATUS ( To determine whether a worker is an employee or an independent contractor, courts consider the following: (1) how much direction and control the employer exercises over the details of the person’s work, (2) whether the person is engaged in an occupation or business distinct from that of the employer, (3) whether the work the person performs...
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...MARKETING OF INSURANCE SERVICES AGENCY APPROACH In recent times the insurance business has been based on agency representation and relationship. The agent represents the principal in the sale of insurance policies and in forcing a contractual relationship between the principal and the client. According to Nwachukwu (1991), the following criteria will be considered in agency creation 1) The creation of agency. The relationship can be formulated either through written or oral communication or by conduct. When required to act under seal, the agent must be given a document to validate his authority. This gives the agent power of attorney to act on behalf of his client. It has also been 2) Capacity: only individual who have been proven capable can act as agents. Exceptional cases are made during his period of sanity. Also a company can take up the role of an agent for another party, even if its not in line with the business operation of the company. The relationship that exists between the principals and agents is solely based on the resultant benefits. Classification of the Power and Authority of the agent 1) Express Authority: in this situation, the authority and rules governing the relationship is clearly spelt out in writing, oral or by deed. The oral form might not cure handy when issues come up. Where the written authority might not be specific and this gives room for manipulation of the principal by the agent. 2) Implied Authority: this authority...
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...TUTORIAL 7 (online) LAW OF AGENCY 1. Describe the relationship of a principal and agent? An arrangement in which one entity legally appoints another to act on its behalf. 2. Can an employee be an agent and why? Can because the employee is negotiating with customers on principal’s behalf. 3. Is a sole distributor an agent and why? It is an agent because its role is to become the middle person in distributing products. 4. In what circumstances can a person be an agent of ‘necessity’? It must be an emergency Need to protect principal from loss 5. What is meant by an agency created ‘expressedly’ and one created ‘impliedly’. It is expressed when spoken or written and; It is implied when inferred from circumstances cases 6. What are the consequences if an agent fails in his duties to the principal? He must compensate the principal for any loss resulting. 7. What can an agent do if he is not paid by the principal? Sue the principal 8. Explain what is ‘ratification’ in the law of agency and why would a principal want to ratify the unauthorised acts of an agent. When an agent, without the knowledge or authority of the principal, acts on behalf of the principal, the principal may choose to accept or reject the acts 9.What is meant by agency by ‘estoppel’? Where an agent, who has no authority, does acts to 3rd persons on behalf of principal, the principal is bound by those acts if he has, by his words or conduct induced such...
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...working with people in order to have a successful insurance agent career. Insurance agents have to face some very stressed out and unhappy customers in the event that they experience a loss, and it’s up to the agent to run interference with a cheerful and positive attitude. Negotiating skills, motivation, a comfort level with insurance advice and some computer and internet skills are also a necessary part of the insurance agent job description. Independent insurance agency jobs work for multiple insurance carriers, but aren’t officially employed by any of them. The benefits of an independent insurance agent career include a higher earning potential than working for an insurance company. In addition, the freedom of self-employment allows people to decide who they want to work with and where to place insurance. The downside is that a lot of new independent insurance agent careers fizzle out quickly without the marketing and training provided by an agency or insurance carrier. Taking an insurance agent job with an agency has a hybrid of benefits shared by independent insurance agent and corporate insurance agent jobs. These agents will most likely receive some benefits and a regular paycheck, but may not get the higher commissions afforded by being an independent insurance agent When it comes to education and Training a college degree is not required to sell annuities or...
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