Legal Aspect of Business

LEGAL ASPECT OF
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION...............................................................................................................................6
REFRENCES...................................................................................................................................7

INTRODUCTION
Legal aspect of business is that aspects of business is that kind of aspects which helps an
organization to maintain legal obligations within the business environment. It also provides a
concrete structure of rules and regulations which are important for a stable framework within an
organization. This also helps in sustaining of relationship in better and efficient manner. Such
aspects is very important for smooth functioning of organization. Also scope of these aspect is
very dynamic because of its tendency to cover all kinds of business environment and aspects
related to them. Agency laws are those types of laws in which a principal hires, agent to
accomplish a task upon his behalf. Nature of these laws is wide because it provides stability
within business environment. Tripartite relationship is formed under this aspect. In this file
things which is going to be explained definition of agency with its key features and duties of
agent towards principal. Also cases regarding duties and agency law.
MAIN BODY
Agency laws are that type of commercial laws which from certain set of rules that are
contractual and quasi- contractual. Also an fiduciary form of relationship exist between
two parties know as principal and agent. Laws of such nature are authorized for acting on
behalf of and higher entity which helps in building legal relations with third party. In
order to understand this kind of legal relationship that is there between an agent and
principal. Agency act as per the contract that has been signed by him and agent assigned
to perform a task. Laws of this kind are based upon principal of vicarious liability that is
there in law of tort. Under this liability a situation is there which says that master is
going to be held liable for wrong committed by servant. Such type of laws are
contractual in nature, because formation of agreement takes place between principal and
agent. These type of contract can be in both written and oral form (Weber. and Studer,
2016).
An agency posses certain characteristics, also basic features and they are legally binding
in a taken place between principal and agent makes principal legally bound for acts or task
performed by agent. Second feature of agency “Consideration is not mandatory” which means
that support of relationship between principal and agent is not required (Frolova. And et. al.
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