Legal Aspects of Business

This file provides an overview of the legal aspects of business, including the importance of following rules and regulations. It discusses the different types of authority in an agent-principal relationship and explores case laws related to agency law. The file is relevant for anyone studying business law or interested in understanding the legal framework of business operations.

Legal Aspects of
Business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
CONCLUSION................................................................................................................................1
REFERENCES ...............................................................................................................................1

INTRODUCTION
Any business is required to have several legal aspects which have to be followed by the
organisation for making it legal body. As per the work in the field organisation for the business
works in there are several rules and regulations which are created for the better working and
good experience in the field. These are created for the protection and secure rice nation of the
organisation in case of any need of issues due to some disputes on misunderstanding or in case of
any cheating in the business. There are several aspects which are connected to the field and law
which are to be understood, some of them are provided in the particular file.
MAIN BODY
Ostensible apparent authority which negatives the existence of actual growth & is nearly of form
of estoppel indeed which is termed agency by estoppel and one cannot call in it and estoppel
unless there are particular three ingredients which are present in the situation. The above
mentioned statement says that These three ingredients are mentioned below:
 A correct representation: the term correctly presentation mean that booty parties has to
provide the correct knowledge of the field with Dr applying in and have to meet all the
documentation and legal paper in the correct presentation (Burke and Moss, 2016).
 A proper reliance over representation: after such presentation of document one has
provide the fact on the correct presentation of the file. They have to define the fact that all
the documents and legal papers with our put in the contract are correct and can be reliable
in nature (Ehrlich and Ziegert, 2017).
 An alternate solution over such reliance resulting from its position: in 2 days legal era
there has to always be a backup for the contraction agreement in an agency lawsuit at the
reliant on which basis the contractors done does not get legalize then any other day line
sandwich the contract can be continued should always be kept as a substitute (Susetyo,
2016).
Providing the key features of agency relationship
Agency relationship has many key aspects which are mentioned below:
1. Agency by agreement or contract: this is directly connected with the contractual
agreement between two people who want to comments a business or a deal between them
in which exchange of money or goods is done. there are several number of people who
are employed in such contracts generally it's more than two people who have to be
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commencing for a proper agreement to formulate. There are several agent in both the
parties which are required for the whole principal to work through and there are many
types of business organisation which work for such kind of business only. There are
many types of risk which are connected in this and that’s why all the terms and
conditions are negotiated before signing of the agreement. These terms and conditions are
always negotiated so that in later future if any breach occurs The Innocent party can
claim their loss of pay. The agent principal relationship over here works in the form
where one of the parties do not directly make a contract with the third party in this the
agent works as implied in the principal. All the instructions which are given by the
principle are followed by agent and in any type of misconduct in the contract the
principal is held liable as he has given the authority to the agent, in case where the agent
is fully miss conducted the whole contract the principal can claim 900 the agent apart
from it if anything happens in the contractual agreement the third party will file a case
against the principal only.
2. Agency by ratification : this means giving full authority for any kind of ratification to the
agent in this the principal has to be present while the contract is happening but later on,
when any sort of misconduct has happened there shall be a ratification done on the
contract. This ratification is just like proofing when the agent and the principal are
commencing and working as one the third party has to give a proper rectification of the
point that the agent has full authority and has exactly made the deal with the principal had
implied him to do. in case of any changes search rectification will work as a security for
both principle and the third party since then the contractual agreement made will be
declared null.
3. Agency by estoppel: in this scenario the principal has given his contractual agreement
deal to be done by a neutral third party who has almost all the authority which is in the
hand of principal for the last final decision is still in the hand of principle. Hear the nature
of estoppel means to get the third party being very confident of the fact that the authority
which is given to the agent is not wrong and all the agreements and terms and conditions
are pre discussed with principal before commencing into the business contract. This thing
acts as a security for both the parties in case of any breach of contract.
Relevant case law to understand estoppel: this case is considered as one of the most
leading landmark cases in understanding the term of estoppel it's called as the bond
content case of 1963. Your the principal had given his agent the walk to buy buy cotton
balls from the third party in a particular rate but due to due diligence he found to do the
deal between 10 more sense than the principal have had asked for. Later while all the
things were getting shift in the cargo the Cotton started to born and 144 was of cotton
were worked out and burned in the accident. later on when the agent for the whole
contract and the principle was questioned by the third party it was held that the agent
stipulated his power and did not follow all the instructions given by his principal. In this
the principal was held liable as a matter of fact to pay all the loss of pay. In this case the
agent was held liable since he did not follow all the guidelines given by the principal and
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as a matter of fact due to which he was buying the same product in ¼ extra price. This
was paid by the agent and not principal or third party.
4. Agency by operation of law: these contracts are legally binding by the law and the court
in several cases where the contractual agreement are you I need a full follow-up by the
court there are several magistrates and codes separately constructed for commencing the
law for such contract. In this the agent principal and the third party do not have much
work as there is a direct relation from law made to the principal and the third party and
delete the agent doesn’t work that much in doing the business and it is totally governed
by the law. In case of any breach or misconduct happened in the contract by any of the
party The Innocent party is given direct claim and refund and the other party has to pay.
Sometimes punishment are also given to them in such cases.
5. Agency of necessity: this is not that common type of agent principal relationship but it is
generally done in a situation where there is an emergency contact to be made. Cure all the
things work as other things or other agency law type contract but your things are done
only of for energetic time period. The contracts you are not for that much long term
honour generally not that is governed by the law is well done in the case of an emergency
or a situation (Zuiderveen Borgesius, 2015).
Provide the different types and styles of agents authority
In basic understanding there are two types of authority in agent floor one is Apparent
authority and second is actual authority these are just comments as for the situation
condition of which type of authority will be given in what sort of condition. Both types are
explain below in brief:
Apparent authority: this type of authority is given by the principal to the agent where things are
not always discussed between them in case the agent feels that the same thing would have been
done by the principle implies the condition. There is a direct authority given in this condition as
per the doctrine of estoppel is also given that whatever the commencement is has to be done for
the betterment of the principal the agent can take an authority for making the conditions such in
the contract with the third party. There are several situations where sometimes the principal
cannot be present every time and cannot have a proper conversation with the agent in such
critical situations the agent takes the command and makes to deal with the third party. Generally
this is implied in many big organisations where the agent in the principal have been working for
several years and understand basic nature of each other (Singh, 2011).
Actually authority: in this type of authority generally the doctrine of estoppel doesn't work
properly your only limited powers and authorities is given to the agent. Rest all other things
terms and conditions negotiation and conclusive result is held by principal. This generally the
agent is only a thought middlemen for making a verbal consignment between both the parties
and do not have any other work apart from this (Rodríguez de las Heras Ballell, 2017).
These two authorities work very parallel in In their basic nature but the common factor between
them is all the three parties which are involved while commencing a correct contractual
agreement.
The basic meaning and purpose of apparent authority
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Apparent authority and its essential elements: the Apparent authority is basically giving full
rights the agent by the principal it is sometimes declared in a verbal nature and sometimes it is
declared in a written conceptual nature contract. It can work in both ways where in an emergency
form of situation the agent can become the whole principle and without discussing it with hymn
can take decisions with the third party, plus if any repercussions are faced in the contract by the
third party it is to be bearded by the principal. The essential requirement for an Apparent
authority to complete is first a legal formation of a contractual agreement between the principal
and the third party. Second a direct negotiation done by the agent after the guidelines given by
principal with third party. After negotiation is made there is terms and conditions which are
discussed in the contract this can be done by the agent or the principal as well. There are no such
boundations as on to the agent but first he has to make the third party believe about the relation
between him and principal. Show that in the case of any ratification there is no question mark is
put up on the belief of this contract. After all these stages once the contract is fully agreed upon
both the parties sign on the contract and in case of any breach the terms and conditions will
define the real authority and conditions on which the innocent party will get the claim and the
wrong has to pay the claim.
Analysing the different elements under apparent authority
several elements which are very important for proving and Apparent authority and making the
third party believe that the contractual agreement which is happening is between the
principle and them only this needs certain elements which need to be fulfilled for a legal
binding contract. It is explained briefly below:
 there has to be basically three four terms done and fulfilled before the full
commencement of the contract. First of all the power and authority which is given to the
agent by principal shall be defined clearly between both of them and then only the third
party should be involved before doing the contract. Second any kind of conditions for
prepositions which is made by the third party first of all should be discussed by the agent
with principal (Goh, 2016).
 There there is a lizard term known as emergency powers. These are used by the agent in
the circumstance where there is a unforeseen scenario which is been created and there is
no time to discuss things with the principal here the agent takes full charge and makes the
decisions which shall we for the benefit of principal and the property dealing with in
(Sheth, 2011).
Case laws related to agency law
Refereed case law for understanding basic things Rama Corp Ltd v Proved Tin and General
Investments Ltd [1952] 2 QB 147 (QBD): this case is considered to be one of the most landmark
case laws of its time where it find all the basic nature and elements of agency law such as
doctrine of estoppel and agent principal relationship. Here there was a case where and
unsubscribed check was passed to an agent where it was misused and the principal had given the
authority to who accompanied the check in the name of the company the third party had to suffer
a loss at the as the according to the principal the money has not been transferred and according to
the third party the check was already issued in the amount was already deducted. Such breeze of
case laws have figured out the agency law to be much more complicated undefined or where all
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these agreements and limited contractual agreement should have had been done in the correct
basis. This case law defined several new elements into the agency law and the doctrine of
estoppel was also defined after this case law as it provided the basic nature of an agent and
principal relationship and provided what repercussions one can face in such kind of situation
(Elizondo and et. al., 2016).
CONCLUSION
This file comprises the basic understanding of agency law and its elements which are related to
the principal agent and third party relation. It is also perfect for the understanding the basic
concepts which works between an agent principal and the contractual agreement which makes
and contract. Agency law is indefinitely understanding the several elements of authority and its
types. The file comprises of case laws as well to understand the concept in a better way.
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REFERENCES
Burke, D. D. and Moss, H., 2016. The Journal of Legal Studies Education: Quality and
Impact. J. Legal Stud. Educ. 33. p.175.
Ehrlich, E. and Ziegert, K. A., 2017. Fundamental principles of the sociology of law. Routledge.
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Elizondo, M. M and et. al., 2016. Linkage Betweem University And Busines: Evaluation Of
Economics And Social Impact, Sistema De Vinculacion Universidad Empresa:
Validacion De Su Impacto Economico Y Social. Revista Internacional Administracion
& Finanzas. 9(1). pp.81-93.
Goh, B. C., 2016. Law without lawyers, justice without courts: on traditional Chinese mediation.
Routledge.
Martin, J. W., State and Local Taxation by Jerome R. Hellerstein.
Modgil, A. and Singla, R., 2013. International agreements in area of banking and
finance. ZENITH International Journal of Business Economics & Management
Research. 3(4). pp.142-146.
Rastogi, R. R., 2017. AGREEMENT ON TRADE-RELATED ASPECTS.
Richards, E. L. and Shackelford, S. J., 2015. Legal and ethical aspects of international business.
Wolters Kluwer Law & Business.
Rodríguez de las Heras Ballell, T., 2017. A technological transformation of secured transactions
law: visibility, monitoring, and enforcement. Uniform Law Review. 22(4). pp.693-715.
Sheth, T., 2011. Legal Aspects of Business: For GTU. Pearson Education India.
Singh, R. K., 2011. VALUATION OF INTELLECTUAL PROPERTY ASSETS.
Susetyo, W., 2016. Shifting Law Political of State Power in Oil and Gas Law Based on People
Prosperity Principles. JL Pol'y & Globalization. 45. p.191.
Zuiderveen Borgesius, F., 2015, October. Online Price Discrimination and Data Protection Law.
In Forthcoming, Amsterdam Privacy Conference (pp. 23-26).
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