Legal Aspects of Business

Legal Aspects of
Business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................2
Agency relationship and its features...........................................................................................2
Agents authority and its types.....................................................................................................2
Case law in the area of Agency Law...........................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Legal aspects are the termed as inseparable part of a successful business environment that
existed in each country. Through legal aspects the policy framework and the mind set of the
government structure of a country is designed and elaborated in complete manner. Legal aspects
of a country helps in determining that each business organisation is following the statutory
framework that is provided in the legal structure. These aspects helps to flashcard evidence,
testimony, physical and sound image to conclude fact at issue. Legal aspects of business in UK
are used in relation to deal with the areas of contractual, quasi-contractual and maintaining a
fiduciary relationship which involves relationship among agent and principal (Amadi-Echendu,
and Amadi-Echendu, 2015). When business organisations appoints agents on their behalf to act
in defined situations then it leads to generation of legal relationship and this relationship makes
them legally binding for the act of other. Apparent authority is simply a situation in which
principal do not provide authority to agent to act in certain way but third party interpreted this act
with actions of principal to be approved. In this case principal is held liable for the act or actions
taken by agent in relation to third party. At the time of apparent authority no expressed and
implied contract existed among agent and principal and even then also principal is held legal
responsible for all the acts performed by agent. In agency relationship agent is only a mediator
who acts on behalf of principal and act of agent is governed with the agency contract entered by
them. Agent acts simply as a representative of principal to third party and make all the efforts in
best interest of principal (Bank, 2015).
Agency relationship is established on good faith and a fiduciary relationship is
maintained among both the parties involved. When agent performs agency activities it must be
ensured that all the activities are done in good faith and no personal interest of agent is involved
in any business transaction. A legal principal of estoppel is used in agency relationship through
which one party can not the facts or a conduct. Through this third party in agency relationship is
protected against fraud and misrepresentation. In this project using all the rules and regulations
agency law will be elaborated.
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