Legal Aspects of Business

Legal Aspects of
Business
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Table of Contents
INTRODUCTION............................................................................................................................3
MAIN BODY...................................................................................................................................3
APPARENT AND ACTUAL AUTHORITY..................................................................................3
Apparent authority affect the position of third parties .....................................................................6
Response of courts in this issue........................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES.................................................................................................................................9
REFERENCES.................................................................................................................................9
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INTRODUCTION
In present scenario, agent are the most important part for the business world because it
allows to take some of the most important decision for the business organisation through which
goals and targets can be accomplished easily. It falls under the category of commercial law where
major role is to deal in the area of quasi-contractual, contractual and fiduciary relation. The
power is given to the agent who takes the decision on behalf of principals and it is assumed that
there is the direct relationship between principal and third party. If agent takes any of the decision
which are not in their capacity, still principal will be liable to bear any of the losses.
Agency law is explained as the law where legal relationship is created by the help of
contract law where principal provides the authority to its agent. Here, agent can act on behalf of
principal. Agent gets the opportunity to deal with third party and take any of the decisions which
are beneficial in context of agent (Boguslavski and et. al., 2019). The main thing which is needed
to be understood is that agent doesn't have the power to take those decisions where authority has
been not given to them and this is how their relation works on daily basis. Agent has been given
three different types of authority and they are express, implied and apparent. In context of the
file, different case laws will be explained and detail explanation will be there on the topic of
authority.
MAIN BODY
The main purpose of giving the authority to another person is just to deal with the
situation and take appropriate decision by looking at the condition. It is necessary for the one who
has been given the authority that they should not misuse the power which has been given to them
because it directly impacts on the performance of principal . Below, there is the detail explanation
about the different authority which is based on consent.
APPARENT AND ACTUAL AUTHORITY
Actual authority: It can be explained as the authority which is generally expressed in
nature. Basically, in this types of authority, it is the responsibility of principal that what are those
works and decision which can be taken by agent on behalf of principal . In any of the situation, it
becomes important for the agent that they must know that what can perform and where they are
not allowed (Ghanavati and Hulstijn, 2015). This types of directions are given through the mode
of verbal communication or even written agreement can be also done easily. It is helpful for
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