Legal Aspects of Business

Legal Aspects of
Business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................2
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Legal aspects of the business is one of the most important aspects for business which
allows to perform all of the legal activity in a systematic manner. It is one of the most important
aspects which allow to take those decision through which goals can be achieved. It is the House
of Parliament who commences the law which is to be followed by every firms for the purpose of
effective results. Discussing about the point legal system, it doesn't give permission to any of the
business to take those decision which are not effective and helpful for the business organisation.
When it comes to agency law, it is determined as the most important law where there is a
fiduciary relationship among the two parties. This types of relations is also known as principal-
agent relation who has the important role in accomplishing the goals of an organisation. Under
this types of relation, principal are those person who has the responsibility to delegate some of
the authority to agent who can perform those activity to achieve the desire result (McNay, 2016).
It becomes the responsibility of agent that they must communicate with agent for every single
action taken by them in order to ensure the principal that all of the work is being performed as
per the requirement. This types of relations are developed through the process where principal
takes the decision to appoint someone who can act on his behalf. It is crucial that agreement
should be formed which can be either oral or written can be also formed. Here, the process of
formation of agreement will be based on agency law as well as contract law i.e., process of
entering into the legal agreement.
The law of agency is totally connected within tripartite relation, where it can be easily
identified about the relationship between employer and employee. This is one of the approach
which can allow to perform any of the organisational activity. Under tripartite relation, there are
some of the relation which is to be discussed where it is explained that agent are just the service
provider where are under the obligation of the agreement which has been formed by them. In
context of the file, there will be detail discussion about the laws and regulations and importance
of principal-agent relation. The statement “An agent is subject to a number of duties imposed by
the general law as legal incidents of the agency relationship. Where the agency is contractual,
some of the duties may take effect as implied term in the contract, or be modified by its
express terms. However, certain duties are imposed on the agent automatically”, will be
discussed in detail.
1