Essay about Business law
1. Agency is term used to refer to the relation that arises when a person (agent) acts on behalf of another (principle) whereas employment refers to a contract between two people known as the employer and employee. An independent contractor is a person or a firm that provides goods to another entity under certain terms specified in a contract but unlike an employee, they don’t have to work regularly.
2. The requirements for creating an agency relationship are; Express appointment or an agreement, estopped, ratification, necessity and co-habitation.
3. The duties of an agent to her to her principle are;
• To exercise due diligence in ding their duties and apply skills they claim to have. • His interests must not conflict with those of the principle. • He’s estopped form denying the authority of principle to any property. • He should not make any secret profits. • He should maintain confidentiality and good faith. • Should keep proper accounts of the principle. 4. The duties of a principle to his principle are; • He should pay the agreed commission. • He should indemnify the agent. 5. An agency relationship may be terminated may be terminated in the following ways;
• Express agreement. • Completion of the transaction • Lapse of the agency time • Death or insanity of the principle • Bankruptcy • Frustration • If the principle becomes an enemy alien • By revocation 6. Actual express authority refers to oral/ written or even implied but must be given expressly to the agent whereas actual implied authority means to do something necessary or incidentally for the performance of express authority. Lastly, apparent authority is an authority which gives rise to the existence of actual authority.
7. apparent authority can be terminated through the following way; • By the principle revoking the agency. • By the agent renouncing the business being done by the agency; • By the agent completing is work. • By the principal being declared insolvent Actual notice is usually issued to a defendant so as to give assurance that is sufficient to the law, that real knowledge of the matter has been given to the recipient whereas constructive notice is a notice that warns against use of things like trademarks, and it’s assumed that everyone knows about it even if they don’t.
8 (a) A principle can be liable for the authorized acts of agents . This is because the agents work on their behalf and so the principle is assumed to the employee of the agent. (b) The principle has no any tort liability for the acts of employee since they are working for the agent. (c) The principle is not liable for unauthorized acts of independent since there is no any relationship between the two.