An agreement establishing an agency relationship may be express or implied, and the agent and principal may be a natural or legal person, i.e. a corporation or partnership.B. Suppose Arthur is Paul`s agent, who is employed until October 31. On November 1, Arthur buys materials from Lumber Yard – as he has done since early spring – and debits Paul`s account. Lumber Yard, who doesn`t know that Arthur`s job ended the day before, bills Paul. Will Paul have to pay? Yes, because the termination of the agency was not communicated to Lumber Yard. It seemed that Arthur was an authorized representative. This issue is addressed in Chapter 12 «Liability of the procuring entity and the representative; Termination of the Agency». Authority based on a position held to deter fraud and other harm that individuals may suffer by dealing with agents, there is a concept of power inherent in the agency, which is a power derived solely from the relationship with the agency. [8] For example, partners obviously have the power to bind the other partners in the company, their liability being joint and several (see below), and in a company, all officers and officers with decision-making power have a clear power to bind the company because of their stated position. An agent`s authority can only be terminated in accordance with the agency contract that first established the relationship between the client and the agent. A client may revoke an agent`s power of attorney at any time, but may be held liable for damages if the termination is contrary to contract. Other events – such as the death, madness or bankruptcy of the client – terminate the relationship between the client and the agent as of right.
(Res judicata refers to rights granted or taken away without the act or cooperation of the party, but through the application of the law to a particular set of facts.) The rule that death or insanity terminates an agent`s authority is based on the policy that the client`s assets must be protected from possible fraudulent activity on the part of the agent. Some states have changed these common law rules, so that some of the agent`s actions are binding on other parties who were unaware of the termination. Agency law deals with any «client» -«agent» relationship; a relationship in which a person has the legal authority to act on behalf of another person. Relationships generally associated with the law of the agency include the deceased guardian, executor or administrator and the employer-employee. The agency is an agreement, explicit or implicit, by which one of the parties, called the client, entrusts the management of one company to the other, the so-called agent; in his name or on his behalf and through whom the agent assumes the conduct of the business and is responsible for it. As a general rule, anything a person can do themselves, except on the basis of a delegated power of attorney, they can do through an authorized representative. Let`s analyze this sequence of events from a legal perspective – recognizing, of course, that this example is an analogy and that even today the law would not impose any consequences on Alden for his inability to fulfill Captain Standish`s wishes. Alden was the captain`s agent: he was expressly authorized to speak on his behalf in an agreed manner, for a specific purpose, and he accepted the mission taking into account the captain`s friendship. However, he was in a conflict of interest. He tried to carry out the order, but he did not live up to expectations.
Eventually, he ended up with the price itself. Here are some questions to consider, the same questions that will come up during the agency`s discussion: According to the agency`s law, if a person is injured in a traffic accident with a pickup truck, the truck driver`s employer can be held liable to the injured person, even if the employer was not directly responsible for the accident. This is because the employer and the driver are in a relationship called the principal agent, where the driver as an agent is authorized to act on behalf of the employer who is the principal. This distinction between agent and independent contractor has important legal implications for taxation, workers` compensation and liability insurance. For example, employers are required to withhold income tax on their employees` paycheques. However, payment to an independent contractor, such as . B plumber hired, does not require such retention. Deciding who is an independent contractor is not always easy.
There is no single factor or mechanical response. In Robinson v. New York Commodities Corp., an injured salesman applied for workers` compensation benefits and claimed to be an employee of New York Commodities Corporation. Robinson v. New York Commodities Corp., 396 N.Y.S.2d 725, App. Div. (1977). But the state Workers` Compensation Agency ruled against him, citing various factors. The plaintiff was selling canned meat and making rounds in his car from his home.
The company did not set him hours, did not control his movements in any way, or reimburse him for mileage or other expenses, or withhold taxes on his direct commission payments. He reported his taxes on a self-employed form and hired an accountant to prepare it for him. The tribunal agreed with the Compensation Committee that these facts established the seller`s status as an independent contractor. The mutual rights and responsibilities between a contractor and a representative reflect economic and legal circumstances. A business owner often relies on an employee or other person to run a business. .