Law-The Agency Concept

The agency concept is where one person (the principal/employer) appoints nearly other (the divisor/employee) to act in his/her place when dealings with third base parties. In companies, employees would be considered federal operators. Agents be appointed to perform all duties the principal would do or specific duties. A principal- mover human relationship whitethorn be created by a contract or by appearance that this relationship exists. If a person acts as an agent for nighone and that other person approves the act, the principal-agent relationship is considered true. In some cases, it may be necessary to appoint an agent to individual if an emergency arises. By law, an agent must follow book of instructions given by the principal and act in the pouch interest of the principal. An agent is expected to perform the skills that he or she claims to possess. In addition, there should be up-to-date records of all personal line of credit transactions available and t he principal should be made sensitive of such transactions. Lastly, the agent is responsible for(p) for communicating information tolerate to the principal. What the agent knows, the principal knows. The principal besides has specific obligations to the agent and must cooperate with the agent. If the contract amid the two parties relegate there will be fiscal compensation, the principal is responsible for paying the agent.

In addition, the principal must reimburse the agent for expenses or personal losses he/she may induce relating to the principals business. A principal, in most cases, is considered the e mployer of the agent. identical any employ! er, he/she must provide the employee with safe and decorous working conditions. If an agent commits a wrongful act that causes scathe to another date carrying out the principals business, the principal could be liable. This supposition is known as vicarious liability. However, if the agent commits an intentional civil wrong on a third party, If you want to get a full essay, entrap it on our website: BestEssayCheap.com

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