Who Is an Agent in Law of Agency

The Commercial Agent Regulations require officers to act “conscientiously and in good faith” in the performance of their duties (Regulation 3); Co-extensively, principals are required to act “conscientiously and in good faith” in their “relations” with their commercial agents (Reg 4). While there is no legal definition of this duty to act “conscientiously and in good faith”, it has been suggested that it requires principals and agents to act “with honesty, openness and consideration for the interests of the other party to the transaction”. Two “normative imperatives”[13] help to achieve this standard of conduct: the Agency must be adopted retroactively or granted in advance. In the first case, there must be tolerance on the part of the representative (the acknowledgement of which may be justifiably implied) or express acknowledgement. Agency law governs the legal relationship between two parties, in which one gives the other the power of attorney to act on its behalf. The party acting on behalf of the other is called an agent. The party granting a power of attorney to the agent is called the principal. Nor can the client revoke the representative`s power of attorney after it has been partially exercised in order to bind the principal (Article 204), although he may do so at any time before the power of attorney has been exercised (Article 203). In addition, if the agency is limited to a certain period, the customer may not terminate the agency before the expiry of the period in accordance with § 205, unless there is a valid reason. If he does so, he is obliged to compensate the contractor for the damage he has suffered as a result. The same rules apply if the representative renounces an agency for a certain period of time. In this regard, note that lack of competence, constant disobedience to lawful orders, and rude or offensive behaviour were considered sufficient grounds to dismiss an officer. In addition, one party must give reasonable notice to the other; Otherwise, the damage resulting from the absence of such notification must be paid (§ 206).

On page 207, the revocation or waiver of representation may be made expressly or implicitly by conduct. The termination becomes effective vis-à-vis the Contractor only when he is aware of it and vis-à-vis third parties until he becomes aware of the termination (§ 208). Thanks to the tacit agency, third parties dealing with representatives of a company can be sure that the agreement they enter into is protected by law. If you have started a business or are an existing business and are looking for help or expertise, you need to know how agency law affects your business relationships. You should consider consulting with an experienced business lawyer who can provide legal advice on agency relationships and help you protect your business interests. But in the case of a married woman, it should be noted that she cannot be representative of another if her husband expressly objects, especially if he can be held responsible for his actions. People who obviously have no understanding, like idiots and crazy people, cannot be agents for others. A logical consequence is that when an agent signs a contract on your behalf, the contract belongs to you – not to the agent.

The agent is not bound by the terms of the contract, even if he has negotiated and signed it. In addition to actual authority, a principal may be bound by the actions of an agent if there was apparent authority. As for the manner in which it is carried out, it is either limited or unlimited, that is, the representative is bound by specific instructions or left to his discretion. This is the duty of a representative: an agent cannot assume new obligations that are incompatible with the obligations owed to the principal. A representative may represent the interests of more than one principal, whether conflicting or potentially contradictory, only after full disclosure and consent of the principal. A representative cannot extract an opportunity from the client by seizing it for himself or by passing it on to third parties. Agency law is particularly important in business relationships. The following is a closer look at the agency`s legislation and its impact on businesses and investors. In addition, clients may be held liable for the criminal acts of their enforcement agents under the doctrine of enforcement agent liability. A client is always liable for criminal acts committed in the performance of his or her official duties.

Agents are liable to third parties for offences or misconduct committed during their mediation. However, the latter rule is subject to this restriction that the money must have been lawfully received by the agent; Because if the representative was guilty at the reception, he will not be released from any responsibility by payment to his client. First, whether the Agency terminates at the end of the period during which it should exist and take effect; If an agency is created to last one year or until a contingency occurs, it expires at the end or when the contingency occurs. “First, in order to express honesty and openness, commercial agents and principals must cooperate in the execution of their agreement. Good faith conduct requires each party to take proactive steps to assist the other in fulfilling its agreement, not just refraining from obstructive conduct. However, whether a party acted in good faith cannot be determined on the basis of a moral or metaphysical conception of cooperation; That assessment must be based on an objective assessment of the genuine agency relationship. Consequently, the intensity of cooperation required varies according to the terms of the contract and the relevant commercial practices. In the case of third parties, a distinction has been made between fault and omissions: a representative is liable in certain circumstances for the former, but not for the latter; He is only responsible for its non-performance with regard to his client.

There is also the agency by necessity, in which an agent is appointed to act on behalf of a client who is physically or mentally incapable of making a decision. It is not always a disability. For example, business owners can designate agents to handle unexpected issues that arise in their absence. Generally, clients are liable for the actions of their enforcement agents if the representative acts within their authority. Let`s say you have an employee who is responsible for hiring other people and negotiating their contracts. Under the Agencies Act, you are responsible for compliance with these agreements. As mentioned above, agency law governs not only the relationship between the client and the agent, but also the relationship between the principals, representatives and third parties they meet. This is important for determining corporate responsibility. The Agency may be dissolved by the act of one of the parties. First, it may in principle provide that the principal has the right to revoke the powers he has granted; However, there are some exceptions to this, including the following examples. if the contracting authority has expressly determined that the power of attorney is irrevocable and that the trustee has an interest in its execution; However, it should be noted that although there may be an express agreement, if the agent has no interest in its execution and there is no consideration for the agreement, it is considered a pact of act and the power of attorney can be revoked.

For example, the New York Times could hire a logistics company to distribute its newspapers in New York. The Times would become the customer; The logistics company would become an agent. Real estate transactions concern real estate brokerage and mortgage brokerage. In real estate brokerage, buyers or sellers are the principals themselves and the broker or seller, who represents each client, is his agent. An agent is obliged to repay the money if the payment made to him is null and void from the outset, so that the money was never received for the use of his principal and, therefore, he is not liable to him if he did not actually pay it at the time of receipt.