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.....................................................................................................3
Case law in the area of Agency Law...........................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Apparent authority is referred to a principal by which a principal in the agency
relationship either by word or act causes third party to reasonability believe that agent has
authority to act for principal. In this agent performs act on behalf of the principal and when third
party changes legal position by relying on principals representations then it leads to creation of
law of estoppal from denying agent had authority to contract. With apparent authority third party
acts on the representations made by the agent believing that performance is done on actual
authority basis. When apparent authority is proved then in that case principal is held liable for act
of the agent to third party (Kemp, 2018). Legal aspects are the science or philosophy of law that
provides indivisible part of policies and framework of government rules and regulations to
govern successful business environment. Through legal aspects all rules and regulations that
governs business in such manner that all the activities can be performed in legal and profitable
manner. Each business organisation is performing work in the changing and complex
environment and it is important to follow all the legal aspects of business to operate in more
profitable manner. These legal aspects of business helps in finding loop holes in the
organisational structure and various issues can be located smoothly through following the legal
system and regulations.
When various legal aspects are implied among business organisations and specially in
agency relationship then it leads to govern various contracts, agreements and relationship of
agency business. Legal aspect helps in governing agency in most effective manner through
creating apparent authority and law of estoppal when any misrepresentation is made. When rules
and regulations are provided in the business then in that case it leads to adaptation of changes
that are taking in the business place (Znikin and Zharikov, 2018). Together with this an
enhancement of agency relationship legal status and legal aspects in business provides more and
more expansion of business at global level. When business environment of other nations are
secured with laws then it leads to generate more opportunities for growth and development of
each type of business organisations. In this project report focus will be provided on agency
relationship and rules and regulations that are applicable in UK businesses will be elaborated in
detail under this report.
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