Commercial & Company Law
1. (A) : Agent: An agent stands in a fiduciary relationship with the principal. According to Doolan (1981), an agent must not allow a situation to occur duty to the principal conflicts with personal interest and he/she must act in good faith also. As has been argued, Doolan (1981) states that an agent is authorized by the principal to perform certain acts, for and on behlaf of the principal. According to Doolan (1981), an agent is never required to perform an illegal act. The agent is not liable when failing to perform it’s term, but when the agent begins to perform them, liability attaches for failure to complete. An agent will be personally liable where, he or she showed an intention to take personal liability, and also where he or she refuses to identity the principal. The relationship between an agent and his principal is created by contract. Under the agency contract, the agent is given authority to do certain things in his principal’s place. The principal pay’s the agent a fee or commission in exchnge for the service provided by him or her.
An agent must always disclose to the principal any material information acquired while performing the agency. Personal quality, skill, and trust are vital aspects in the relationship between the principal and the agent. An agency can be created in three types of ways, 1. Express agreement, whether oral or written, 2. Implication, based on the custom or practice of the trade, or 3. Conduct of the principal. Creation of agency is essential to commercial and financial transactions, because and organization can function only through it’s agents.
Creation of Agency
An agency relationship can arise by agreement, necessity, ratification and estoppel.
By Agreement:
Express Authority: According to Doolan (1981), express authority is a situation in which an individual provides definitive privileges of representation to a particular party, with the ability to make decisions on behalf of that entity. It is
An agent must always disclose to the principal any material information acquired while performing the agency. Personal quality, skill, and trust are vital aspects in the relationship between the principal and the agent. An agency can be created in three types of ways, 1. Express agreement, whether oral or written, 2. Implication, based on the custom or practice of the trade, or 3. Conduct of the principal. Creation of agency is essential to commercial and financial transactions, because and organization can function only through it’s agents.
Creation of Agency
An agency relationship can arise by agreement, necessity, ratification and estoppel.
By Agreement:
Express Authority: According to Doolan (1981), express authority is a situation in which an individual provides definitive privileges of representation to a particular party, with the ability to make decisions on behalf of that entity. It is