Agents And Agency Relationship: Principles And Problems: Essay Example, 542 words GradesFixer
exit-popup-close

Haven't found the right essay?

Get an expert to write your essay!

exit-popup-print

Professional writers and researchers

exit-popup-quotes

Sources and citation are provided

exit-popup-clock

3 hour delivery

exit-popup-persone
close
This essay has been submitted by a student. This is not an example of the work written by professional essay writers.

Agents And Agency Relationship: Principles And Problems

Print Download now

Pssst… we can write an original essay just for you.

Any subject. Any type of essay.

We’ll even meet a 3-hour deadline.

Get your price

121 writers online

blank-ico
Download PDF

In organization contracts, there exists a lawful connection between two individuals whereby one individual acts on behalf of the other. The principal-agent relationship is a course of action in which one element lawfully chooses another to follow up for its benefit. In this relationship, the agent follows up for the benefit of the principal and should not have a conflict circumstance in doing the act. Any individual following up for the other can’t be an agent for another until there is an implied or explicit agreement between them, which prompts a legitimate connection between them. The principal-agent relationship can be entered into by any willing and able parties for the purpose of any legal transaction. In simple cases, the principal within the relationship is a sole individual who assigns an agent to carry out a task, however other relationships under this guise have a principal that is a corporation, a nonprofit organization, a government agency or a partnership. The agent is most often an individual capable of understanding and ultimately carrying out the task assigned by the principal. Common examples of the principal-agent relationship include hiring a contractor to complete a repair on a home, retaining an attorney to perform legal work or asking an investment advisor to diversify a portfolio of stocks. In each scenario, the principal is the individual seeking out the service or advice of a professional, while the agent is the professional performing the work. The agent is committed to act to the greatest advantage of the important in light of the fact that the agents’ activities will make lawful commitments for the principal. The agency relationship empowers the agent to work for the principal as though the principal was accessible and acting alone.

There are distinctive types for the agency relationship creation, in light of the need .i.e. Actual authority and apparent authority. Actual authority fuses express authority and implied authority. An agent is said to have ostensible or apparent (not actual) authority if: The third party has in actuality depended on such portrayal to manage the agent. Third parties additionally enjoy wide insurance, cost of which is put at principals doors. Without notice of agents’ bad behavior, third party can conjure principle of apparent authority and force principal to agree to terms of agreement he may have not approved and which is unfavorable to his interests. It gives the idea that the law of agency is loaded with uneasy decision of adjusting clashing interests off all parties. It endeavors to guarantee that idea of agency is serviceable practically speaking and advances financial development without setting undue burden on innocent party.

An agency may be terminated in the following two ways: by act of parties and by operation of law. An agency may be brought to an end by act of parties in any one of the following manners: by mutual consent. (ii). by breach of contract. (iil). by revocation of authority by the principal, (iv) by renunciation of agency by agent. An agency terminates by operation of law in following ways (i) on completion of business. (ii) On death of principal or agent. Insanity of either party. (iv) Insolvency of the principal. (v) Efflux of time (VI) Destruction or loss of subject-matter. (vii). Change of law. (viii). War.

Remember: This is just a sample from a fellow student.

Your time is important. Let us write you an essay from scratch

100% plagiarism free

Sources and citations are provided

Cite this Essay

To export a reference to this article please select a referencing style below:

GradesFixer. (2019, Jun, 12) Agents And Agency Relationship: Principles And Problems. Retrived July 20, 2019, from https://gradesfixer.com/free-essay-examples/agents-and-agency-relationship-principles-and-problems/
"Agents And Agency Relationship: Principles And Problems." GradesFixer, 12 Jun. 2019, https://gradesfixer.com/free-essay-examples/agents-and-agency-relationship-principles-and-problems/. Accessed 20 July 2019.
GradesFixer. 2019. Agents And Agency Relationship: Principles And Problems., viewed 20 July 2019, <https://gradesfixer.com/free-essay-examples/agents-and-agency-relationship-principles-and-problems/>
GradesFixer. Agents And Agency Relationship: Principles And Problems. [Internet]. Jun 2019. [Accessed July 20, 2019]. Available from: https://gradesfixer.com/free-essay-examples/agents-and-agency-relationship-principles-and-problems/
close

Sorry, copying is not allowed on our website. If you’d like this or any other sample, we’ll happily email it to you.

By clicking “Send”, you agree to our Terms of service and Privacy statement. We will occasionally send you account related emails.

close

Thanks!

Your essay sample has been sent.

Want us to write one just for you? We can custom edit this essay into an original, 100% plagiarism free essay.

thanks-icon Order now
boy

Hi there!

Are you interested in getting a customized paper?

Check it out!
Having trouble finding the perfect essay? We’ve got you covered. Hire a writer

GradesFixer.com uses cookies. By continuing we’ll assume you board with our cookie policy.