Legal Aspect of Business

LEGAL ASPECT OF
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................5
REFRENCES...................................................................................................................................6

INTRODUCTION
Legal aspect of business are those types of aspects that deal with formation of business
environment. These aspects are very much essential in order to provide growth to an
organisation. It helps in providing an concrete structure to give positive impact in achieving
goals and objectives for organisation. Aspects of such kind are very important as they ply major
role in building relationship between all the persons working in a organisation. Agency laws are
that type of laws which are very important in order to accomplish a task for an organisation.
Such laws deals with existence of fiduciary kind of relationship. Also agency law works over a
simple formula in which a principal hires a person to perform task upon his behalf. Tripartite
form of relations is present between agent and principal. In this file things that are going to be
deal with are agency and its key features. Various duties of agent towards principal is going to be
explained with case laws.
MAIN BODY
Agency laws are that kind of laws which helps in covering of those aspects that deal with
making relationship between an agent an principal better. Laws of such kind are required for full
filling of those objectives which helps in providing a sustainable environment within a business.
Basic elements of these laws is based upon principal of vicarious liability in which an principal
and agent relationship is explained. Also tripartite form of relationship is explained which talks
about employer and employee relationship (Frolova And et. al., 2018). Under these laws as per
there framework an agent is hired for performing task by principal on his behalf. Work assigned
to an agent is under a contract signed by both principal and agent. So, these are also known as
agreement of contractual nature. These agreement can be in written and oral form. An agency
acts as a medium that deals with task that has been given to it by an higher authority. Certain key
features are there which helps in forming of agency and they are legally binding contract are
those types of agreement which are there to provide a legal stability and makes both parties
legally bound towards smooth performing of task. Second characteristics is no mandatory
consideration in this support of principal and agent is not required which means that
consideration is important for forming a agreement. Age limit this means that age of the person
should be legalise and age of agent should be verified before forming a contract with him.
Authority to contract all necessary documentation should be done for formation of contract.
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