CREATING AGENCY RELATIONSHIP WITH THE EMPLOYER

Creating Agency Relationship with the Employer

Introduction:

Agreement relations arising from the contract or law, where one of the parties, most importantly, provides authority for the other side, the agent to act on behalf of and under the supervision of the chief to deal with a third party (Perritt 2006 ). Agency relationships of trust in nature, and the actions and words exchanged with the agent third party associated principal. Agreement on the establishment of the agency relationship may be express or implied, and as agent and principal can be either natural or legal person, such as corporations or partnerships.

Law agencies

In accordance with the law of agency, if a person is injured in an accident with a truck, truck driver, the employer may be liable to the victim, even if the employer does not have direct responsibility for the accident(William et.al1999). This is because the employer and the driver in a relationship known as the "principal-agent, in which the driver, as an agent is authorized to act on behalf of an employer who is principal. The law allows the agency to use another person to make his or her job, sell his or her goods, and acquire property or on behalf of her, as if the employer was present and acting in the face. Main may allow the agent to perform various tasks, or may limit the agent to specific functions, but regardless of the amount or scope of the powers granted to the agent, the agent represents the principal and the principal subject of management

Voluntary good faith and relationship of trust, known as the trust relationship between the principal and the agent for a principal (Einar 2000 ). This connection requires an agent to carry out duty of loyalty to the ground and use reasonable efforts to serve and protect the interests of the principal. Agent who acts on their own behalf violates fiduciary duties and will be financially responsible to the Principal for any loss, mainly bears because of this breach of fiduciary duties. For example, an agent who accepts a bribe to buy only goods from the seller of a particular violation of their fiduciary duties, takes the money because he is an agent of duty to work only for the principal.

How are the relations formed?

Agency relationship created by agreement of both agent and principal, and no one could unwittingly become an agent for another (William 2008). Although the principal-agent "relationship can be established agreement between the parties, the contract is not necessary if it is clear that the parties intend to act as principal and agent. Intention of the parties may be expressed by their words or implied in their behavior.

Perhaps the most important element of the principal-agent relationship is the concept of control: The agent is obliged to act under the control or direction of the main. The degree of control over the principal's agent distinguishes an agent of an independent contractor over which the control ...