Most agencies are under contract, but the agency can also arise implicitly or apparently. An agency coupled with an interest is a particular type of agency relationship. In a typical agency relationship, the agent works on behalf of the client, but retains no ownership rights or interest in the asset. An agency associated with an interest is when the agent receives an estate or interest in the property that is the subject of the agency. The agent in this relationship owns or controls the property of the customer and has legal rights against interference by third parties. Let`s analyze this sequence of events from a legal perspective – recognizing, of course, that this example is an analogy and that even today the law would not impose any consequences on Alden for his inability to fulfill Captain Standish`s wishes. Alden was the captain`s agent: he was expressly authorized to speak on his behalf in a manner agreed upon for a specific purpose, and he accepted the mission taking into account the captain`s friendship. However, he was in a conflict of interest. He tried to carry out the order, but he did not live up to expectations. Eventually, he ended up with the price itself. Here are some questions to consider, the same questions that will be repeated throughout the discussion on the Agency: most of the Agency`s oral contracts are legally binding; the law does not require them to be reduced to writing. In practice, many agency contracts are drafted to avoid evidentiary problems.
And there are situations where an agency contract must be written: (1) if the agency`s agreed purpose cannot be fulfilled within one year or if the agency relationship is to last more than a year; (2) in many states, an agreement to pay a commission to a real estate agent; (3) in many states, the power of an agent to sell real estate; and (4) in several states, contracts between companies and commercial agents. Not all service contracts necessarily create a master-servant relationship. An important distinction is made between the status of agent and that of independent contractor. According to section 2 of section 2 of the Agency, “an independent contractor is a person who enters into a contract with another person to do something for that person, but who is neither controlled by the other nor subject to the right of the other to control his or her physical conduct in the performance of the business.” As the name suggests, the independent contractor is legally autonomous. A plumber employed for a contractor is an employee and representative of the contractor. But a plumber who commits to repairing pipes in people`s homes is an independent contractor. If you hire a lawyer to resolve a dispute, that person is not your employee or agent; He is an independent contractor. The terms “agent” and “independent contractor” are not necessarily mutually exclusive. In fact, by definition,.
an independent contractor is an agent in the broad sense of the term who undertakes to do something for the other at the request of another. As a general rule, the dividing line between an independent contractor and a staff member is not clearly drawn. 1. Flick v. Crouch, 434 p.2d 256, 260 (OK, 1967). Suppose Arthur is Paul`s agent, who is employed until October 31. On November 1, Arthur buys materials from Lumber Yard – as he has done since early spring – and debits them from Paul`s account. Lumber Yard, who did not know that Arthur`s job had been terminated the day before, invoiced Paul. Will Paul have to pay? Yes, because the termination of the agency was not communicated to Lumber Yard. It seemed that Arthur was a licensed agent.
This issue is addressed in Chapter 12 “Liability of principal and agent; Termination of the Agency”. An organization associated with an interest is created by a written agreement that provides that A. A broker must receive a sales commission of 5% of the proceeds from the sale of a property. To perform his or her duties, an agent often has to appoint his or her own officers. These appointments may or may not be approved by the client. For example, an insurance company may appoint a general agent to open offices in cities in a particular state. The agent will necessarily conduct his affairs through agents of his choice. These agents are sub-agents of the client if the general agent had the client`s express or implied authority to hire them. For legal reasons, they are representatives of the principal and the agent general of the principal, and both are responsible for the conduct of the sub-agent, although the general agent normally agrees to be primarily responsible (see figure 11.3 “Sub-agent”). A bilateral contract is an agreement between two parties in which each party promises to perform a task in exchange for something from the other party.
Most of the contracts that small business owners encounter take the form of bilateral contracts. If each party carries out its mission in accordance with the standards and timetables set out in the agreement, the bilateral treaty shall be respected. If a party fails to comply with the obligations set out in the agreement, it may be found to be in breach of the bilateral agreement. The agency relationship can be created in two ways: by agreement (explicitly) or by force of law (constructive or implicit). Think of John Alden (1599-1687), one of the most famous agents of American literature. He is said to have been the first person on the Mayflower to set foot on Plymouth Rock in 1620; he was a carpenter, cooper (cooper) and diplomat. Its agency role – which is interesting here – was celebrated in Henry Wadsworth Longfellow`s “The Courtship of Miles Standish”. He was to court Priscilla Mullins († 1680), “the most beautiful virgin in Plymouth,” on behalf of Captain Miles Standish, a brave soldier too shy to propose.
Standish turned to John Alden, his young and eloquent protégé, and asked Alden to speak on his behalf, unaware that Alden himself was in love with Priscilla. Alden accepted his captain`s mission, although he knew he would lose Priscilla to himself, and looked for the lady. But Alden was so speechless that her praised eloquence was overlooked, Priscilla coldly pointed to the purpose of Alden`s mission, and eventually led her to flip the table on one of the most famous verses in American literature and poetry: “Why don`t you speak for yourself, John?” John eventually did so: the two married in Plymouth in 1623. Even though the agency contract does not need to be in writing, the contracts that agents enter into with third parties often have to be in writing. Thus, article 2-201 of the Unified Commercial Code expressly requires that contracts for the sale of goods at the price of five hundred dollars or more be signed in writing and “by the party against whom performance is sought or by his agent”. Several problematic factual scenarios are repeated within the agency, and the law has developed in response to them. Agencies created by consent – agreement – are not necessarily contractually binding. It is not uncommon for one person to act as an agent for another person without consideration. For example, Abe asks Byron to run errands for him: buy wood from his account at the local lumber yard.
Such a free agency does not lead to any result other than the more common contractual agency. A contract is void or voidable if one of the parties is unable to enter into a contract. If the principal and the agent are unable to do so, para. B example if a minor asks another minor to negotiate or sign an agreement, there can be no question of the contestability of the contract. But suppose that only one or the other does not have the capacity. In general, the law focuses on the customer. If the customer is a minor or does not have legal capacity, the contract may be cancelled even if the contractor has full legal capacity. However, there are certain situations where the agent`s ability is important. Therefore, a mentally incompetent agent cannot bind a client. Most agencies are under contract. Thus, the general rules of contract law set out in Chapter 8 “Contracts” govern the law of the Agency. However, agencies can also be created without a contract, by arrangement.
Therefore, three principles of the contract are particularly important: the first is the requirement of consideration, the second the written and the third concerns contractual capacity. In this chapter, we look at the main agent side of the triangle. In the next chapter, we will discuss relationships with the participation of third parties. An agent whose reimbursement depends on continuing to have the authority to act as an agent is supposed to have an agency associated with an interest if he has an interest in the business. .