DQ1_WK4

Running Head : Law of Agency

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Law of agency is a component of the broad array of commercial laws that seeks to provide contractual relationships in the business relationships between two or even more persons . Its functions are within commercial laws and deals with the aspect of contractual relationship where an agent has the legal authority of acting on behalf of his /her principal in forming legal relationships with other third parties . It is the relationship between an agent and his principal in which

the principal through either express or thereof implied powers gives authority to his agent on working under his optimal control as well as on his factual behalf . The agent is therefore provided with the power of negotiating on their principal 's behalf in bringing either him or other third parties into legal facts of contractual relationships ( HYPERLINK "http /s .law .cornell .edu /wex /agency http /s .law .cornell .edu /wex /agency

Law of agency is a control and guiding tool of regulation into relationships that is bound between

The principal and their third parties in which case the agent is to deal on behalf of their relationship

The agents and their third parties in which they perform on behalf of their principals , and

The principals and their agents

The functionality of law of agency is equated in terms of the principle of the common law which is defined by the Latin premise , qui facit per alium , facit per se , which implies that a person who is to act /acts via another person , is to act in her /his personal interest and that this action is deemed parallel to the concepts of both strict and vicarious liabilities . Accordingly , an individual person is deemed liable both in tortuous and criminal law parameters for the omissions and acts of another person

Historically , the liabilities and rights of both the agents and their principals is a reflection of various legal provisions and needs for commercial transactions . The rise of law of agency came as a refuge to the wide spread business transactions where managers were unable to move and travel across different levels in making various business transactions . The growth in corporate business modalities that formulated fictitious legal persons that could only have acted through specific human agents necessitated the formulation of agency law . The principle parametric functionalities in law of agency are to legalize independent contracts by businesses through such independent people in buying and selling services and goods on behalf of the business holdings . Through such agreements , law of agency provides contractual liability between the principal and the agents . The agent is at implied authority of acting directly as instructed by the principal which is legally synonymous as if his principal was him /herself involved in the action

Generally , the advanced arms length of agency when expressed to a third party has the provisions that the agents as acting on behalf of their principals for such third parties should do so in good faith...