The corporate business entity is a legal “thing.” Once properly set up, the corporation can act like an individual in a business setting: it can operate a company, enter into contracts, conduct business transactions, sue and be sued. This is not always a case of incapacitation. Agency Law - Wikipedia The law of agency is an area of commercial law dealing with a contractual or quasi-contractual, or non-contractual set of relationships when an agent is authorized to act on behalf of another (called the Principal) to create a legal relationship with a Third Party. It doesn’t matter if you didn’t know the person was legally your agent. Key Concepts: Terms in this set (69) A principal has the right to control an agent's conduct in matters entrusted to the agent. A principal or agent is the legal agreement when one party acts on the behalf of the other. STUDY. An agent is a person employed to do any act for another or to represent another in dealings with third persons.2The person for whom such act is done, or who is so represented, is called the ‘principal’. Thus, an agent is the link that connects the principal to the third parties. March 2001 Agency Law and Contract Formation ISSN 1045-6333 AGENCY LAW AND CONTRACT FORMATION Eric Rasmusen Discussion Paper No. Gravity. A duty to follow and obey the instructions of the principal. A general agent is a person authorized to transact every kind of business for his/her principal. This creates a contract of agency. The law will look at the conduct of both parties and not simply their intent or words. AGENT, practice. The law of agency is defined as the ability to act through another. A representative or official of an administrative agency or government is known as an agent: an FBI agent. An agent is an attorney who transacts the business of another attorney. LEARNING OUTCOME At the end of this chapter, students will be able to: Explain how an agency relationship is created. Agency, in law, the relationship that exists when one person or party (the principal) engages another (the agent) to act for him—e.g., to do his work, to sell his goods, to manage his business. 323 05/2001 Harvard Law School Cambridge, MA 02138 The Center for Law, Economics, and Business is supported by a grant from the John M. Olin Foundation. The meanings of the term “agent” vary. PLAY. 6. The person who is being represented by the agent is referred to as the principal. The law of agency is defined as the ability to act through another. Other terms that might be used include a guardian, ward, administrator, executor, or employee. Want High Quality, Transparent, and Affordable Legal Services? People hire agents to perform tasks that they lack the time or expertise to do for themselves. There need not be an agreement between a business and an agent specifying an agency relationship. EthanOperle. Section 212 states that he shall work with reasonable … In its simplest form, it is simply appointing another to act on your behalf for a specified purpose. For example, nobody gets very far i… Always follow the termination clauses set out in the initial agency agreement. Business Law 1) The ___ is the person who authorizes another in an agency relationship. This paper can be downloaded without charge from: Match. Somewhat unsurprisingly, the same problem arises with respect to the different categories of authority. To define agency in business law, it is important to look at the common relationships found in a business setting. Where an agency is created by agreement, it is the agreement that sets out the relationship between the Principal and Agent. Hence, the … Created by. 2. c. the obligation of an agent who acted outside the scope of his or her authority is rejected. As per section 211, an agent shall act within the scope of authority that his principal confers upon him. If you need help with defining agency in business law, you can post your legal need on UpCounsel's marketplace. An agent in commercial law (also referred to as a manager) is a person who is authorized to act on behalf of another (called the principal or client) to create a legal relationship with a third party. Also, he shall strictly follow the directions of his principal. The concept originated in Roman law as represented by the maxim qui facit per alium, facit per se (he who acts through another, acts as if directly himself). The agreement will typically set out what the Agent is authorised to do, the location that the Agent is authorised to act in, and when the Agent is allowed to act. A duty of dealing with a third party or the principal in good faith. 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