Agency and Partnership

Running Head : Agency Partnership Law

Agency Partnership Law

[Author 's Name]

[Institution 's Name]

The Law on Agency and Partnership : Outline

Agency

I . Rights and Liabilities Between Principal and Agent (including Agent 's Fiduciary Duty , Principal 's Right to Indemnification

Agent 's fiduciary duty

The agent must exercise reasonable care in all his duties . He must obey the principal , but is not required to do any acts that are contrary to law

The agent also has a duty of loyalty to the principal , whereby he is not

allowed to receive benefits to the detriment of the principal nor usurp any of the principal 's opportunity

Principal 's duties to the agent

The principal should compensate the agent for the services rendered

If the agent disburses sums of money for the principal , or pays for the necessary expenses incurred in the performance of his duties , the principal must reimburse the agent

Indemnification

The principal must indemnify the agent for any liabilities arising from the agent 's lawful and authorized acts that were done on the principal 's behalf

II . Contractual Rights Between Principal (or Agent ) and Third Persons (including Creation of Agency Relationship , Authority of Agent , Scope of Authority , Termination of Authority , Ratification , Liability on Agents Contracts

Creation of agency relationship

An agency relationship may be created through express authority by the principal , also known as authorization by appointment . There is no particular prescribed form or language necessary for this appointment however , the words used must be sufficient enough to show the intention of one person being represented by another

The other way in which the agency relationship may be created is through the concept of apparent authority , or through the principal 's conduct If the principal leads a third party to believe that a certain person has the authority to bind the principal through his actions , then an agency relationship is created . The principal is estopped from denying the agency in other words , he will not be allowed to deny that an agency relationship was created

Authority of agent and Scope of authority

General agents are those that are authorized to conduct all of the affairs in connection with a particular business , trade , or basically all that the principal is also authorized to do himself

Special agents are authorized by the principal only for a specific task purpose or act

Termination of authority

The following operate to revoke the agent 's authority by operation of law : death of the principal , death of the agent , insanity of one of the parties , and war between the respective countries of the principal and the agent . The exception to the rule that death of the principal or the agent terminates the agent 's authority by operation of law is when the agency relationship is coupled with an interest

Ratification

If an act is done by the agent on behalf of the principal , but the principal does not assent or if the agent actually has no authority or has exceeded his authority , the act is...