Legal Aspect of Business: Agency Laws and Duties of an Agent

LEGAL ASPECT OF
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION...............................................................................................................................5
REFRENCES...................................................................................................................................6

INTRODUCTION
Legal aspect of business are those types of business aspects which are there to provide
stability in an business environment. Such policies are there to provide stability in a business and
forms policies which plays an important role in growth of a business. These aspects provide a
legal frame according to which a organisation has to work. Agency law are those types of laws in
which an contractual form of relationship exist between principal and agent. In such laws an
principal assigns another person known as agent to act on his behalf. An tripartite relation exist
between both the parties. In this file duties of agent is going to be defined in context to this
statement'' an agent is subject to a number of duties imposed by general laws as legal
incidents of the agency relationship. Where agency is contractual, some duties my take
effect as implied term in the contract, or be modified by its express terms. Certain duties
are imposed on the agent automatically''.
MAIN BODY
An agency law are those kinds of laws under which a relationship exist between agent
and principal. In such condition an agent has to act on behalf of principal. In law of agency a
legal relationship is present in which an contract is formed between agent and principal. This
gives an legal obligation to principal for assign agent to act for principal towards third party. A
tripartite relationship is there which defines relationship of employer and employee. An agency
is recognised in as an important part in existing social environment. These laws are very diverse
in nature and plays an important functions in both public and private law. An agency is formed
through through expressed and implied manner (Weber. and Studer, 2016). Under expressed
manner an agent is appointed through expressed agreement. This agreement can be oral or
written. Under implied manner an agent is formed by estoppel which means agreement is not
there but an oral conformation upon role of agent is there. No agreement is singed. A fiduciary
form of relationship exist between principal and agent. An agency is formed in order to full fill
certain objective or goal decided between principal and agent. Termination of an agency can
only take place when there is violation of any rule given in the contract. Fiduciary duties are the
duties which comes into picture when an interest of a person is put forward and companies
interest is ignored .The duties arises out of reasonable expectation that is done on part of party.
This can also happen when an obligation of full filling other person is there (Frolova, and et. al. ,
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