Legal Aspects of Business: Agency, Contracts, and Authorisation

This report delves into the legal aspects of business, focusing on agency relationships and business contracts. It begins by defining key terms such as agency, G2S, EAA, EIA, and UA, and explores different types of agent authorization, including express actual authority, express implied authority, and usual authority, supported by relevant case laws. The report then analyzes the benefits and limitations of using agents. Task 2 shifts the focus to business contracts, defining a contract and outlining essential elements for creating a good business agreement. It covers express terms, confidentiality, non-disclosure agreements (NDAs), non-compete clauses, and the importance of consistency and certainty in contracts. The report provides comprehensive information on the legal frameworks necessary for conducting ethical and legally sound business practices, providing a foundation for understanding the legal environment in which businesses operate.

LEGAL ASPECTS OF
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Types of agent's authorisation.....................................................................................................1
CONCLUSION................................................................................................................................4
TASK 2............................................................................................................................................5
INTRODUCTION...........................................................................................................................5
Elements needed for making a good business contract...............................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Legal aspects of business simply refers to an environment which is designed by
government of a nation for the purpose of organising as well as controlling corporate world in
ethical and disciplined way (Tobias, Connor and Ferguson-Smith, 2011). In order to do so,
higher authorities have created different terms such as various types of agencies like G2S
( Group deux sexes), EIA (Environment Impact Assessment), UA (User Agent), EAA (Estate
Agents Authority) and many more. Apart from this, several kinds of agents is also made for the
similar motive. The present report is covering all such prospects and explaining each
terminologies along with specific case laws.
TASK 1
Types of agent's authorisation
This is important to understand about various terms and conditions for every companies
in order to run their businesses in legally correct manner. Some of the key constructs associated
with legitimate facets are explained as follows :
Agency : It is usually stated as a fiducial kinship which is created between two parties
whereby one is known as an agent who is being under control of another person named as
principal (Pozgar, 2011). In this scene, principal used to hire an agent for performing certain
actions in lieu of him.
G2S : It is acronym for Group deux sexes. This is nothing but group of officers who
commonly work together in armed forces of France for the welfare and development of the
country and its citizens.
EAA : It Stands for Estate Agents Authority. Its main aim is to give common
apprehension of the laws and norms associating with encumbrances in Hong Kong to the estate
agency practitioners.
EIA : This is nothing but Environment Impact Assessment which deals with concerns
inter-linked with environment due to entry of specific projects. It is usually used to govern by the
policies of Town & nation planning 2017 of England.
UA : It stands for User Agent. This term is affiliating with an effectual software that acts
on behalf of users. For example, A personnels working in a company take use of internet for
searching anything. Hence, internet or google (search engine) is treated as user agent in this case.
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In addition to above described concepts, there are various other elements which is playing
crucial role in field of business. Different types of agent's authority is being elaborated below in
this regard :
Express Actual authority : It is form of authorisation which is basically expressed by a
principal to its agents either verbally or in engrossed format. Hence, it can be said that the scope
of this kind of authority is restricted to the words of a master which is documented in a paper for
particular case. For example, a rental contract frequently directed that the leasing agent
comprises of authorisation of binding the landholder.
Case law : “Site Five Housing Dev. Fund Corp., v. Estate of Bullock, 112 AD3d 479,
480 (1st Dep’t 2013)” could be the considered as good example of identical authority. In this
lawsuit, president of landowner is lacking express actual authority for entering into evidences of
storing or owning specific property. In addition to this, proprietor also did not perform or stated
anything but given the impression or persuasion to president that he is having that power.
Express implied authority: An authority is refereed as implied when it is being
generalized from the conditions of different cases. Besides it, all those things which has been
said or written at the time of making agreements between two individual shows the scope of this
authorisation (Pathak, 2013). The differentiation between implied & express authority can be
relies simply on whether the authority is circumscribed by conduct or by spoken words. This is
to be noted that implied actual authority is being generated by conditions that passably led the
agent for believing that he or she is having control even if the master or principal has not given
him rights affiliated with express authorisation for acting on place of his or her.
Case law : One of the best case example for express implied authority can be “Castillo v.
Case Farms of Ohio, 96 F Supp. 2D 578”. This legal proceeding is including miserable working
situations for migratory employees. Herein agent / principal relation is existing between
America's Tempcorps (ATC) and Case Farms. The employed circumstances were generally not
rebuted. Migratory farm personnels were hired by America's Tempcorps in Texas in order to
work in Case Farm's Ohio-based chicken processing plant. Ticket of bus and $20 for 3 days of
meals had being offered to them. On the other hand, after joining, complete scene was different .
The workers were packed into such rooms that are totally unfurnished and infested with rats &
cockroaches (Weske, 2012). Due to those poor situation, they were sleeping on floors. Besides
this, their convenience was also over - crowed.
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Usual authority : It is also known as Incidental authority. This deals with some
situations whereby would have been obligated for the unlicensed acts of their agents. In such
circumstances, the third party is being unknown by the facts associated with presence or
beingness of the principal. Hence, it can not be stated that a principal could held out the agents
to have dominance and act as agent & was e-stopped.
Case : In lawsuit of “Watteau v. Fenwick” , an undisclosed principal had hired an agent
for running his commercial actions. Thus, hereby owner is obligated or responsible for each and
every act of his representative who is usual or incidental to his businesses.
Benefits :
There are so many advantages of agencies which is listed below :
 By appointing an agent, all issues of an individual can be easily solved since agents are
experts of such cases. In – fact, resolution of those conditions is considered as the core of
their professions. Hence, there is no need of worry because each problems are being
easily conducted by these mediators. Here – in, it is to be noted that solution of every
aspects inter- connected to business is seen in accordance to the eyes of law. Thus,
legislations imposed by government bodies is considered while carrying out such
circumstances (Kemp, 2014).
 Again it is very easier to discover any agent in this modern era. Besides this, there is also
no requirement for agents to work under particular corporation.
 Recruiting an advisory is not seemed to be expensive, hence, vast firms can appoint their
agents without investing higher amount of money for handling their troubles.
Limitations :
Apart from several benefits of hiring an agent, there exist few disadvantages too which is
going to be highlighted below :
 No body is present to observe the way of accomplishing a specific task of employed
representative. Thus, some unfair work might be carried out by him. This will impact
negatively on the business of owner whether financially, physically or mentally.
 An accord between a principal and an agent get terminated in a situation whereby death
of master occurs.
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CONCLUSION
From the above based report, it can concluded that an agent is a person who used to work
at the position of another individual called as principal. The key motto of doing so is to solve the
problems of each and every citizen linked with laws since they are not having any idea regrading
rules and regulations of legal bodies of their country. Several kinds of agents and their power
along with responsibilities has been described in this assignment broadly.
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TASK 2
INTRODUCTION
A contract can be simply defined as an activity wherein two or more people get engaged
together for carrying out certain work as per their notion. Drafting a good business contract
means to follow all rules & regulations made by legal bodies in order to conduct specific
business in ethical form (Ahlgren and et. al., 2013). This in turn aids in operating activities in
smooth way and as a fruitful result, no conflict would emerges in current as well as upcoming
days. If any individual would not work as per the legislation of government (i.e. breaching of any
law occurred), then he is considered as guilty in-front of system of governance. This section is
elaborating or describing different terminologies associated with creating a good business
accord.
Elements needed for making a good business contract
Before entering into particular agreement, a person should have proper knowledge about
all aspects inter-linked with that. For example, terms and conditions being applied by on his
contract, policies and standards which is being imposed by government of its nation for the same
and so on. Some of the important concept for building a good commercial concord are stated as
follows :
 Express term : This is nothing but the words present in written or oral form associated
with specific case. It may be inferred by various statues like CRA ( stands for Canada
Revenue Agency), UCTA (The Unfair Contract Terms Act 1977), etc.
◦ CRA used to administer or govern numerous of legal proceedings connected to taxes
as well as benefits (Hossain, 2013).
◦ In addition to this, it is also dealing with certain treaties & taxation related
conventions of Canada, plans associating with forward regulatory and many more.
◦ On the other hand, UCTA is a special norm of parliament of UK which commonly
used for regulating contracts through constraining the operations and legality of some
terms liked with particular agreement.
 Confidentiality : According to this, if two person involves in an agreement, then each of
them is liable to maintain the secrecy in context to the information regarding that accord.
If any of them breached the similar condition and leak even a single data to another
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person who is not being the part of that concord ; then he is treated as culprit in-front of
higher bodies or government. Thus, it can be said that a contract includes a transaction of
sensitive or secret data.
◦ In earlier days, pre-contractual exchanging of infos are carried on by utilising NDAs.
According to NDA (Non disclosure agreement),involved parties must have to accept
that he would not disclose any data or facts which is being defined by their
agreement.
◦ Thence, NDA is formulating a concealed or confidential relationship among the
groups who get engaged in a harmony so that safeguard or protection could be offered
to any kind of personalised and patented data affiliated to specific commerce.
◦ For example, before making an agreement with a person (named Porter), another
party named as Harry must has to accept that he would not transfer any information
related to their concords to any other individual who is unfamiliar with the identical
harmony.
◦ On the contrary, refers to a Non-Compete Clause. This is a clause where - by one
person (generally a staff member) does not agree to enter into or start a similar or
identical business in contention or rivalry against some other party (normally an
employer). The usage of such clauses is taken over during of removing a worker.
◦ According to it, if an employee started working for its rival in order to acquire
competitory benefits by conveying secret facts regarding the transactions or dealings
of their former senior ; then in accordance to law that person may be terminated by
his supervisors (Barker and Branson, 2014).
◦ For example, a personnel who is being employed in an enterprise named ALDI and
besides that, he or she is working for another organisation at very same time by
stating them each and every private information then she or he might be fired lawfully
by that firm.
 Consistency and certainty : For making any contract fair, it is important for every
contractor to design its rules and conditions properly at once; since after its formulation,
such terms could not be changed.
◦ Thus, it is vital thing to create specific and definite norms & convey the identical to
other one so that no confusion will happen in future.
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◦ For instance, before introducing any product or services by ZARA enterprise, it is
important for them to construct their terms and principles regarding each clothes and
same info. Should be communicated to the purchaser.
 Battle of the form : It simply refers to a scenery wherein a company used to keep their
views in front of another to whom they are making agreement. At this situation, both of
them try to present their thought and attempt for attaining its approvals.
◦ For example, Virgin Atlantic is establishing a contract from a catering organisation
and are doing effort for the acceptance of its conditions like minimum investment,
best quality food and so on. But the other party is trying for imposing its own price
list for the similar.
 Penalty clauses : If any of the terms associated with specific agreement got breached by
an individual and due to that some pre -estimated loss happens then he / she is liable to
pay predetermined compensation amounts.
◦ For instance : If any person named X is not obeying the standards given by his
owner as per law and breaching of that accord occurred, then that individual would be
penalised by legal bodies.
 Applicable law : It is basically legalisations of England and Wales which are dealing
with various accords happening in their nation (Applicable law clauses, 2017). It is to be
noted that such rules ought be enforced in accordance to the circumstances or conditions
of particular accord.
◦ For instance, Civil & Criminal law should be applied according to the situation of
specific cases.
◦ If any written agreement is related to breach of principles & standards then it might
be resolved as per the legalisations of civil.
◦ On the contrary, criminal acts such as accidents, stealing and many more occurs then
it will be solved or dealt as per the acts of criminal law.
 Termination of contract : This is related with the conception of resignations of an
individual who are performing within a corporation. Prior to fire any worker, it is eminent
to provide specific notice to that person. It is to be noted that such notices are being given
by HR manager.
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◦ At the same time, if any one is resigning from a venture, then he / she is also liable to
serve notice period before that.
◦ For example, A worker named Porter who is working in Virgin Atlantic is to resign
then he must have to serve notice period. This could be of one or two month as
decided by managers of that organisation.
CONCLUSION
From the above based report, it could be summarised that there are so many norms
formulated by government of United Kingdom for conducting a concord in ethical way. These
are referred as elements of drafting a good business contract. For every person or an enterprise, it
is very important to consider all such essential components of better business agreement (like
maintaining confidentiality, obeying all laws, pay penalty clauses if breaching occurs and many
more things) at the time of carrying out particular accord. These all aspects has been highlighted
in this assignment in a clear way along with various examples.
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REFERENCES
Books and Journals
Ahlgren, J. and et. al., 2013. Consumers on the Internet: ethical and legal aspects of
commercialization of personalized nutrition.Genes & nutrition. 8(4). p.349.
Barker, R. L. and Branson, D. M., 2014.Forensic social work: Legal aspects of professional
practice. Routledge.
Hossain, K. ed., 2013.Legal Aspects of the New International Economic Order. Bloomsbury
Publishing.
Kemp, R., 2014. Legal aspects of managing Big Data.Computer Law & Security Review.30(5).
pp.482-491.
Pathak, A., 2013.Legal Aspects of Business. Tata McGraw-Hill Education.
Pozgar, G., 2011.Legal aspects of health care administration. Jones & Bartlett Publishers.
Tobias, E. S., Connor, M. and Ferguson-Smith, M., 2011.Essential medical genetics(Vol. 22).
John Wiley & Sons.
Weske, M., 2012. Business process management architectures. In Business Process
Management(pp. 333-371). Springer, Berlin, Heidelberg.
Online
Applicable law clauses. 2017 .[Online]. Available through : <https://weagree.com/drafting-
principles/8-particular-types-of-clauses/8-7-applicable-law-clauses/>.
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