Law of Agency

Law of Agency

Part A

Defining Agency

To understand and comprehend how contracts work and that what problems arise in the midst of creating such contracts. Hence, for this purpose, the law of agency and the impact it has upon the development and complete execution of the law upon business proceedings is to be understood at length.

The law of agency, in simple terms, is an area of commercial law that deals with the kind of challenges and the problems that are experienced in the light of creating and understanding how does a contractual agreement, a quasi-contract and non-contracts work between the agent, a person who performs the requirements of the contract set and the principal, the sole investor or the person on behalf of whom the agent performs the requirements.

Here, since the agent is working on behalf of the principal, he is in complete control and at the discretion of the principal and the requirements that he posts in front of the agent. It is hence the responsible of the agent to bring the principal and third parties into contracts, which would create more contracts and business relationships altogether.

How does Agency rise?

The ideology that revolves around the development of agency and the relationship that is established with the principal can be traced and tracked down in different commercial and legal settings. The best example which could help understands the delicate relationship existing between an agent and a principal is the relationship that exists between an employer or the one who is a business owner and the employee that works under him.

Keeping in line with the law of agency, the employee is offered and inducted into an organization on the fulfillment of certain requirements, which not only change put impositions upon the work that they are to do while being in the ...