An agency relationship is a fiduciary relationship in which a person (called a “principal”) allows an agent to act on their behalf. The agent is subject to the client`s control and must accept his instructions. [2]. Classic examples of agency relationships are employer/employee, lawyer/client, and company/manager. [3] A commercial agency contract is a contract based on the rule of law that establishes a fiduciary relationship in which the first party (“the principal”) agrees that the actions of a second party (“the agent”) bind the principal to the agent`s subsequent agreements, as if the principal had entered into the subsequent agreements. The agent`s power to bind the principal is generally legally called authority. The agency created by an agreement can be a form of implied authority, e.B. if a person gives their credit card to a close relative, the cardholder may be required to pay for purchases made by the parent with their credit card. The agent`s fiduciary relationship with the client is not the other way around – that is, the client is not the agent`s fiduciary. Nevertheless, the customer has a number of contractual obligations towards his representative. Most workers` compensation laws account for 100% of the cost of an employee`s hospitalization and medical care needed to heal the injury and rid it of its effects.
They also provide for the payment of lost wages and death benefits. Even an employee who is able to work may be entitled to compensation for certain injuries. Part of the table of benefits for certain injuries under the Kansas Act is listed in Note 20.16 “Kansas Workers` Compensation Benefits for Specific Injuries.” The Agency is revoked by law, by extinguishing the purpose of the Agency or the Client`s power over it or by the full performance of the Trust. An agent is liable for misconduct towards third parties if he intentionally or unconsciously commits an injustice, although authorized by his client, because no one can legally authorize another person to commit an injustice to the rights or property of others. These functions are analogous to many of the officer`s functions that we have just investigated. In short, a client has a duty to “not unreasonably disrupt [an agent`s] work.” Reprocessing (second) of the Agency, Article 434. However, the customer is entitled to compete with the representative, unless the agreement expressly prohibits it. The client is obliged to inform his representative of the risks of bodily injury or financial loss related to the performance of the tasks entrusted to him.
Failure to warn an officer that travelling to a particular neighbourhood required for work may be dangerous (a fact unknown to the officer but known to the principal) could, under the common law, lead the principal to a claim for damages if the officer is injured while doing his or her work in the neighbourhood. The client is required to account for the funds to which the agents are entitled; The obligation of a principal depends on various factors, including the degree of independence of the representative, the nature of the remuneration and the practices of the company concerned. An agent`s reputation is no less valuable than a client`s, and so an agent doesn`t have to keep working for someone who defiles them. 1. Duty of loyalty: An agent owes his client a general duty of loyalty. This means that the agent must subordinate his interests to those of the client if they fall within the agency relationship. An example of a breach of this obligation occurred when an employee responsible for deciding what to offer in construction projects began working for another construction company as an independent contractor performing the same type of work. The employee did not communicate this to his current employer and in fact submitted bids for both companies for the same orders.
Following legal proceedings, the trial judge found that the employee had breached his duty of loyalty. [8] Agency law does not exist in a vacuum and is influenced by developments in business law, tort and contract law. The agency is a subset of these areas of law that is used to describe a special relationship between individuals when the agent is authorized to act on behalf of a principal. A procuring entity may also be held directly liable for an offence committed by the agent if the principal instructs the agent to commit an offence. Alternatively, a client may be held liable on behalf of an executing agent if the contractor is an employee of the client and is acting within the scope of its employment relationship. [16] For example, if an agent is responsible for making deliveries for a customer and is negligently involved in an accident during delivery, the customer may be liable for any damage suffered by a third party as a result of that accident. [17] As a general rule, the Contractor must follow the appropriate instructions regarding the method of performance. What is reasonable depends on the customs of the industry or trade, previous transactions between the agent and the client, and the nature of the agreement to establish the agency. For example, a customer may prescribe uniforms for different categories of employees, and a manufacturing company may tell its sales force which sales pitch to use with customers. On the other hand, certain tasks entrusted to officials are not subject to control by the contracting authority; For example, a lawyer may refuse to allow a client to dictate courtroom tactics. 44-510d.
Compensation for certain permanent partial disabilities; Schedule. If a permanent disability is granted as a result of the injury, a disability will be deemed to exist immediately after the injury and compensation will not be paid beyond the number of weeks allowed in the following schedule: The agent will be responsible for performing the tasks assigned by the client, as long as the client gives appropriate instructions. In addition, the contractor is required to perform tasks that do not intentionally harm the customer. A duty of loyalty is also implicit in the principal-agent relationship, which requires that agents not put themselves in a position that creates or promotes a conflict between their interests and the principal-agent`s interests, also known as the principal-agent problem. (9) The loss of the first phalanx of a toe is equal to the loss of 1/2 of that toe, and the compensation is 1/2 of the above amount. But in the case of a married woman, it should be noted that she cannot be an agent for others if her husband expressly opposes it, especially if he can be held responsible for his actions. People who clearly have no understanding, as idiots and fools, cannot be agents for others. In this category, we may determine that the client owes the agent obligations arising from contract law, tort and – under the law – workers` compensation. An agent is usually hired because they have special knowledge or skills that the client wants to use. The officer is required by law to perform his or her work with the care and skills that are “standard in the field for the type of work for which he or she is used” and to practice special skills when these are greater or more refined than those normally employed in the community.
In short, the agent is not legally allowed to do sloppy work. Reprocessing (second) of the Agency, Article 379. Since the customer can`t be in every place at the same time – that`s why agents are hired after all – much of what`s crucial to the customer`s business comes to the agents` attention first. If the representative is indeed aware or right to know information relevant to the matters entrusted to him, he is obliged to inform the customer. This obligation is particularly critical, as the information in the hands of a representative is in most cases attributed to the customer, whose legal obligations to third parties may depend on receiving the information in a timely manner. For example, service of proceedings requires a defendant to respond within a certain number of days; Failure by a representative to notify the principal that a subpoena has been served may deprive the principal of the right to defend an action. The attribution of the knowledge possessed by the representative to the client is strict: even if the representative harms the interests of the client – for example, by trying to deceive his employer – a third party can still rely on the representative`s notification, unless the third party knows that the representative is acting unfavourably. There is another class that, although it has understanding, is unable to act as an agent for others; they are persons whose duties and characters are incompatible with their obligations to the client. For example, a person cannot act as an agent when buying goods for another person that belongs to him. 2.
Duty to compensate the officer: For example, a landowner hired two officers to dig a trench, but did not tell officers that a telephone line was running at the location where the trench was to be dug. The officers cut the line and the phone company chased them. The client/landowner was obliged to compensate the vicarious agents for this liability. [14] The responsibilities of enforcement agents to their clients result from a breach of their duties and obligations to the client, excess of power, misconduct or negligence or omission or act by which the client suffers damage. Agents may be liable for damages and losses under a special contract that violates general commercial usage. They can also become liable if they charge a Delkredere commission. The principal-agent relationship is an agreement by which one company legally entrusts another to act on its behalf. In a principal-agent relationship, the agent acts on behalf of the principal and should not have a conflict of interest in the performance of the action.
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