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Legal Issues - Business Law

Submitted by isra on March 29, 2008

Category: Business
Words: 2604 | Pages: 11
Views: 426
Popularity Rank: 20,323
Average Member Grade: N/A (Add a Comment / Grade this Paper)

Legal Issue
A paper submitted in the course of
Business Law BUS/415
University of Phoenix
March 16, 2008




Introduction
Agency Law in a Business Environment
A principal is the party who employs another person to act on his or her behalf; an agent is a party who agrees to act on behalf of another. In order for the agent to successfully fulfill their tasks for their principal’s they have duties that they are expected to fulfill. The duty to obey instructions, to act with skill, loyalty, protects information, to notify and give information and to be accountable for their actions. An agency is the principal-agent relationship, which are formed by the mutual consent of a principal (employer) and an agent (employee). Agency Law is a large body of common law, which is a mixture of contract law and tort law that governs the agency (Cheesemen, 2004). This law separates and regulates the relationships between agents and principals, agents and third parties and principals and third parties. An agency law exists because it is impossible for one person to travel everywhere to negotiate all transactions to maintain and grow the business. With the many travels there are relationships that are established and maintained.
Relationships
There are two types of relationships that exists in a business environment; Employment Relationships that are initiated with the hiring of an employee or a contractor. The other relationships are Agency Relationships that make the contracts binding between the principal and the third party. Three kinds of Employment Relationships are used in a business environment; Employer-Employee Relationships, which initiate when an employer hires an employee to perform physical duties that are assigned. This gives the right to control the physical conduct of the employee to the employer. The employee can only become an agent when the employer...

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