Legal Aspects of Business

Legal Aspects of Business

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
Definition and key features of an agency relationship.................................................................4
Defination of apparent authority..................................................................................................6
Case law.......................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Legal aspect refers list of laws and utilization of the principal of laws and justice to
business. While legal aspect concept refers requirement of occupation records and evidence to
conform legal requirements. For example business records should be maintained along with
accurate statement which should be prepared in the well-formed manner and that's offered by law
(Semenov and Mishalchenko, 2017). To starts business needs agreement which is known as
business agreement. Business agreement mentions a contract which is formed between two
business company. Main purpose of business agreement to accomplish all legal requirement for
appropriate contract which consider mutual assent, offer & acceptance, capacity and legal
purpose. It is crucial for runs business because it leads transparency in decision-making and
assists to gain trust of stakeholder. Business law covers every prospect of starting, running and
closing. Besides of this includes contracts, employment law, intellectual property and bankruptcy
etc. this report will cover legal agent and agreement of business.
MAIN BODY
Definition and key features of an agency relationship
Agency refers relationship between rules and agent where one person keeps legal or
ethical relationship of belief along with one or more than other parties. Thus, kind relationship
also known as fiduciary relationship. Agency is a medium between two business organization
where laws (principals) offers legal authority to agent for dealing with third party on the behalf
of principals(Andersen, 2018). This relationship supports business to gain growth in market and
agency laws makes corporation accountable for their decision, even action doesn't follow law.
There are some terms which is mainly designed to builds trustable relationship between agent
and principals such as principals, agent, independent contract, agency relationship, fiduciary
relationship, power of attorney which requires in written etc. beside of this three factor requires
building relation that are consent, control and fiduciary duty etc. Agency relationship starts up
through agreement where both laws(principals) and agent gives agreement in written or oral. In
that state apparent authority creates during dealing with third party. Apparent authority is a
situation where third party gets that an agent action is bounded with principals. Such kind
contracts and principals supports agent to deal with third party. Such kind transparency in
business leads trust of third to agency to agent or organization. Agency relationship not only
gives benefits in business dealing, but also supports to develop marketing strategies i.e. in