Legal Aspects: Types of Agents, Contract Elements, and Business Law

This report delves into the legal aspects essential for business operations. It begins by defining legal considerations and their importance for corporations, highlighting how legal bodies guide businesses through complex situations. The report then explores different types of agents, including EAA, EIA, UA, and G2S, and their roles in resolving legal issues. It examines various agency methods, such as express actual authority and express implied authority, with relevant case studies like Hely-Hutchinson v Brayhead Ltd and Burnett v Clark. The report also discusses the advantages and disadvantages of agency. Furthermore, the report outlines significant elements for drafting effective business contracts, including contract classification and essential components for creating successful commercial agreements, using Barclays as a case study for real-world application. The report aims to provide a comprehensive understanding of legal frameworks that are indispensable for any individual or multinational corporation.

Legal aspects

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 (Types of agents)...............................................................................................................1
TASK 2............................................................................................................................................6
Significant elements which is considered while drafting a good business contract...................6
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Legal aspects is a term which means legitimate considerations which must be followed
by corporate world while running their business entity. However, juridical bodies are acting as a
guideline for several multinational companies because it aids associations in various complicated
circumstances (Sweet and Schneier,2012). For example; prevent customers and sellers from
exploitative activities by enforcing distinct laws, norms and legal policies. Therefore, assignment
is going to highlight necessity of legitimate terms while commencing a new business as well as
during accomplishing business operations. Different types of agents used by corporations are
also outlining in this project. Furthermore, project is also throwing lights on important
components that must be considered while designing an effective organizational contract.
TASK 1 (Types of agents)
In order to understand various legal terms an individual or company needs to acquire
deep knowledge about various norms, beliefs and acts which is indispensable for success. Here is
a some essential terms which must be applied at workplace while running a business is described
as follows:-
Agency:- Law of agency is a region of corporate law which deals with cluster of
contractual, quasi-contractual connection that engaged an individual is known as a agent.
Role of agency :- However, their main objective is to act on the behalf of principal or
client in front of third party or court (Beiker, 2012). It means, this term shows the equal
relationship between customer and agent whereby principal member grants the authority to agent
through expressly or implicitly to act on behalf. Agents are playing a major role in resolving
various legal issues or barriers because an agent act as a representative of a principal or someone
whomsoever is providing authority to them. Thus some of the major duties of agents are going to
discussed below:-
 Obliged to raise voice on behalf of principal
 Responsible to design plans and policies for removing conflicts between two parties.
 Fight with third party on the behalf of his owner.
Basically, various terms of agency are described as follows:-
EAA:- It stands for “Estate agent authority” which is used in European union while
appointing an agent for property dealing cases in order to act on behalf of specific client.
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According to this law it has been analysed an application is granted to European members about
offering right of residence from European economic area. As per the case of McCarthy and EU
family permits it has been identified that case was referred from high court. Its about the entering
of EU citizens in their home member state. Basically, main reason behind filling this case is that
sufferer party is belong from two countries that is UK/Irish both due to mother and father
background. Thus, it is case of area in Europe in which as per advocate opinion provisions of
directive 2004/30 was applying in this situation.
(Source:- Types of agents, 2018)
EIA:- Denoted as “Environmental impact assessment” is an appropriate procedure
which is used for evaluating influence on surrounding due to introduction of certain project and
development. Analysis of this might occurred by considering positive as well as negative impact
of several factors such as inter-related social economic, changes in cultural, human health.
Basically, it helps legal bodies while making final decision by assisting them towards corrective
direction. Beside this, project of environment clearance process are going through several four
phases such as; screening, scoping, public consultation and appraisal
UA:- Stand for “user agent” which is an effective “software” component that acts on
behalf of client. For example; reader of mail is denoted as a mail user agent. In fact, in few
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Illustration 1: Types of agents

cases user agent is known as a client in a network protocol. Beside this HTTP that is hyper text
transfer protocol determine the customer software originating the request, fowling header of
customer (Paul, Smith and Blumberg2012).
G2S:- “Group deux sexes” which means “mixed working team of officers are coming
closer in French armed forces ”. They are having distinct roles and responsibilities towards
economy development.
Hence , it has been analysed that law of agency is comprised with various types of agents
with advanced features in order to act on behalf particular customers for resolving certain issues.
In fact, in UK law number of cases are their where consumers are appointing agent on behalf of
their for reducing their legitimate problems in much appropriate manner by understanding each
or every aspect of necessary acts that is applicable on specific situation. According to viewpoint
of law group it has been analysed that agency is a situations which create a positive relationship
between individual and agent through several method in order to act on behalf of that person in
front of third party. Thus, various methods of hiring agent are described in detail format as
follows:-
Express actual authority:- According to this term it has been understood that an
individual need to hire a legal member by expressing each or every term of contract either orally
and in written form. Basically, main reason behind appointing a staff of legitimate is to
understand every terms of legal in much better way in order to minimize the possibilities of
mistakes. Moreover, first or foremost scope of agent of actual authority is to be ascertained in
oral and written form. In other words actual authority is somehow means that certain level of
power must be granted to agent which is either broad, general power and it may be limited. Thus,
particular powers are known as a express authority (Hossain, 2013). Hence, one of the famous
case of express actual authority is Hely- Hutchinson v Brayhead Ltd [1968] that is based on
providing authority of indemnity. Moreover, in this scenario Hely- Hutchinson is a client of Mr.
Richards and acting on behalf of principal in order to resolve their certain legal issue that is ;
suing Perdio electronics which means Hely- Hutchinson recover or not. Hence, as per express
actual authority is a term that is used by a person for offering a power to agent with the help of
several techniques such as ; verbally or non -verbally. It means, case of Mr. Richard is totally
suits on actual authority.
Advantages:
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These are generally arises in case principals aspects or conduct rationally implied the
agent to believe that parties has been empowered to a specific act. The primary benefits of using
this authority can either be in written form.
Disadvantage:
There are certain specific rules and regulation that is needed to be use by the parties. In
case any person misuse their right have to faced specific implication that are being set by the
government.
Express implied authority:- Agents are playing a very vital role in reducing issues faced
by principals by taking immediate actions like explaining the advantages or disadvantage of
implied authority. Basically, appointing other member is very much essential for any
organization or individual because common people are failed in understanding meaning of
legitimate terms. Thus, express implied authority is one of the appropriate method which is
utilized by multinational companies in order to keep or preserve written records of contract that
is signed between agent and principal. It means, as per this tool power is transferred to agent in a
legal way by signing a treaty as well as acquiring consent from other members (Mason, 2017).
Additionally, it is applicable on partners, solicitors and architects because written agreement is
fulfilled by both the party for entering into this type of agency. Hence, one of the most important
case of implied authority is Burnett v Clark (1771) M 8491 in which the Burnett in question is
James Burnett of Monboddo, a Senator of the College of Justice. It is scene in which duty to care
diseased horse is assigned but care taker get failed in fulfilling this duty. As a result Lord
Monboddo have the authority to sue Clarke against this action. Apart from this, one of the
famous case of this are ; Castillo v. Case Farms of Ohio in which improper working
circusmtnaces for migrated employees are identified. Therfore, because of that appointing of
agent is needed which resulted in creating reltionship between agency and cleint.
Advantages:
 The major benefits of implied authority cannot be express or written into an agreement.
But it can provide authority to a person that assume to have right to transact the business
for specific kind of a principals.
 This seems to incidental to express authority hence not every individual detail of an
agents can spelled out in mentioned contract.
Disadvantage:
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 Some of them are misusing these rights that are not authorises to them. If any one found
guilty is doing any unethical practices they need to be penalise with high fine or
sometime impressment also.
(Source:- Corporations Law 1: Authority to act, 2014)
Usual authority is also knwon as a implied one because it almost similar with expressing
one as principal is transfrring authority to agent in order to act in court on behalf of person
(Givol and et. al., 2011).
After considering various types of authority there are some advantges and drawbacks of
agnecy are identified taht are highlighted below:-
Advantages :-
There are several advantages of law of agency such as:
 A firm don't need to pay salary like as an employee, they get one time payment as
defined in contract. A contract is a protection against costly court proceeding.
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Illustration 2: Corporations Law 1: Authority to act

 Third party hiring may not affect on large company, in terms of finance.
 Agents are easy to find through that provide services without being employed under any
company. They work as freelancer. There are certain circumstances when they exist
within the firm.
 Agent can handle all affairs without any guardian or conservator being appointed by a
court order.
 A power of attorney provides rights to handle legal cases or financial issues.
Disadvantages:-
 There are some disadvantages also exists like:
 A contract between principle and agent is not a substitute of last will, if the owner would
die in that case contract will not proceeding to agents right.
 Agent no have overseeing by other. So it is tough to control their activities. They harm
in term of misunderstanding between two parties. They may not conveys both side
issues.
 Transparency between two parties get impact, so they are not aware about what is
happening on next door.
At last, it has been assessed that appointing agent is very much indispensable for an
individual as well as for multinatioanl assocition because it helps in identiftying actual meaning
of distict acts which is applicable on common people and corportae comapnies (Kapka-
Skrzypczak and et. al., 2011).
TASK 2
Significant elements which is considered while drafting a good business contract
Corporate world is focussing on various several components while entering into a healthy
contract in order to overcome probability of mistakes and illegal activities. However, small or
large business are involving into number of agreements such as; suppliers, transactions of goods
to consumers across international boundaries, shareholders, business partners and so on.
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(Source:- Good Contract Makes Good Business Friends, 2018)
Commercial agreement is taking place on regular basis in between multinational
companies for various purposes. For example; Barclays is involving in a numerous of
professional contract in which they are facing several issues such as; sometime termination of
agreement by consumers due to their inability, failed in paying interest rate and so on. Thus
before emerging into commercial contract an organization needs to consider few essential
elements which is described as follows:- Classification of contracts:- First or foremost thing is that maximum agreements are very
simple in an organization which is either in written form, verbally or by taking action.
Therefore, simplex contract occurs when one single party promises to accomplish
something for initial one. For example; if an enterprise is going to sell a product to their
client in exchange of money then it is known as a something is happening from both the
sides. Basically, an effective contract of an association needs to understand the nature of
agreement in which they are going to entering in order to take further actions as per the
requirement (Uprety and Salman, 2011). Offer and acceptance:- Whenever an individual and enterprise is going to entered into
contract then initially it must be offered which means “invitation to treat” by expressing
the word out that it is open for acceptive contracts. Whereas, acceptance is a second
component which means that another party is ready to agreeing in a certain bidding.
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Illustration 3: Good Contract Makes Good Business Friends

Basically, these two terms are mandatory for further actions because after this parties
move foster. Capacity and undue influence:- As per this term, it has been identified that bidding
occurs only in between eligible parties such as; minor are not allowed to enter into
contract. It means, person must be physically, mentally or emotionally capable to take
part into agreement in order to understand each or every aspect like ; drawbacks,
consequences of breaching, outcomes and benefits. Thus , as per the law it is essential to
learn more about legal terms and conditions such as; age required for legal contracts,
absence of negative or criminal act and must not be coerced. Hence, bidding is taken into
free way without burden (Ahlgren and et. al., 2013). Intention, form and legality:- Another three main factors of good business contract are
intention, form and legality which must be considered by parties while engaging in a
particular agreements in order to overcome chances of errors. Therefore, intention is a
term which means that both the members must have same intend while engaging in an
agreement and aware about legal consequences. Hence, it is indispensable to fulfils
necessary formalities for minimizing the probability of confusion. It helps in proving the
contract that it is legal.
 Breach of contract:- At last this element is considered at that time when contract is
unaccepted by one party and dissolved due to their personal issues or reason. Thus, as per
the law party which is harmed by other due to breach have the authority to sue other. In
fact, it may also become void if mandatory components are not considered.
Hence , above factors are playing a major role while entering into a bidding because it
assist an individual in very situation as well as aids in resolving complicated terms.
Confidentiality:- After getting aware about the necessary elements of bidding its time to
consider some other useful tools which is very much essential for parties in order to attain the
target of contract (Reed, 2012). Basically, confidentiality is a mandatory one if two members are
coming closer to make a contract because it will safeguard the privacy of relevant data and
information. In fact, it is essential in every agreement either legal , illegal , formal and informal
because success is depend upon maintaining the secrecy of a contract. Along with this, it also
protects the parties from any confusion, conflicts , biasses, misinterpretation and wrongful
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conduct. Therefore, members whomsoever are involving into an agreement needs to make
information confidential by following each and every rules or regulations of contract.
Penalty clauses:- Penalising of member if they get failed in fulfilling the legal terms and
conditions are known as a penalty. Thus legitimate bodies are emerging various number of acts,
norms, beliefs, rules and regulations based on penalty. It means, these clause is applied when
contract is breaching party and other member is facing a damage due to this. Basically, it might
fulfilled through monetary payment. For example; El Makdessi is a case which is linked with sale
of a Middle Eastern media enterprise and the victuals of a share acquisition and shareholders'
consent. Thus, as per the contract seller was breaching the specific non-compete limitation then
party must loose their entitlement. It means due to this company have the right to sell share of
shareholders at a specific price which is excluded value of image (Kapetanakis, Kolokotsa and
Maria, 2014).
Termination of contract:- Legal bodies are concerning about common people or entire
nation by enacting number of laws and acts which helps society while performing their business
operations. Thus, If an individual is terminating the contract there are some laws which is
applicable on it (Baumann,and et. al., 2011). All those legal rules and regulation mentioned in
contract or agreement have not been followed by either party to contract in an appropriate
manner, in that situation the law get terminated. One of the major case of termination of contract
are occurred in between Brownson v. Honda of Canada in which termination is occurred without
any cause. Therefore, in this scenario Brownson commenced an activity for wrongfulness
conduct after being terminated without any reason during his involvement in Honda's research
into relative incidence of misinterpretation at workplace. There are some other reason as well
due to which the law may terminated:
 Impossibility of performance
 Breach of Contract
 Rescission of the contractor
 Complete of the contract
Applicable law:- It means all applicable law, rules and regulation which are having
binding effect of law of any applicable government authority, court, tribunal, agency,
commission or other instrumentality of :
 Any government of any country
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 Any state, province, city or other political subdivision
 Any supranational body
Attributes of a good contract:
 Certainty of contract: It is said to be perfect skill and knowledge which has total
security from error or unethical state of being without doubt. There are certain theoretical
situation under which decision making can be done by avoiding risk factors.
 Consistency: There are specific aspects those are related with the contract. Some legal
aspects in some extent as a perfect matter of personal preference can be taken into
consideration.
 Clarity of expression: It has been seen that having proper freedom of expression which
is more common means in any kind of contract. It is essential for any business to make
clear expression of matter so that people can analyse rules and regulation in more simple
and easy manner.
 Brevity: It is known as specific clause in any contract that is more common with legal
aspects. The primary objective of each opinion is to deliver more effective results to the
parties. This would guide readers to a specific conclusion by using more reliable ways in
more suitable manner.
CONCLUSION
From the above report it has been summarized that legal aspects must be considered
while accomplishing various business activities because it helps managers during running a
business entity. Major objective of this report is to highlight the significant of various legal terms
and conditions while entering into a legitimate contract. Basically, above report was also
showing the role of agent and different techniques of appointing them in order to act on behalf of
certain principles with the help of relevant business cases. Along with this, necessary terms of an
effective organizational contract was also explained such as; offer, acceptances, confidentiality,
clauses of penalty and so on. Hence, overall project is throwing lights on corporate laws which
must be considered by multinational companies while accomplishing their business operations.
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