Cinémathèque de Tanger

What Is Agent in Contract

2. Duty to compensate the officer: For example, a landowner hired two officers to dig a trench, but did not tell the 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] As these issues suggest, agency law often involves three parties – the procuring entity, the representative and a third party. It therefore deals with three different relationships: between the client and the agent, between the client and the third party, and between the authorised representative and the third party. These relationships can be summarized in a simple diagram (see Figure 11.1 “Agency Relationships”). 2. Obligation to act in accordance with the explicit and implicit terms of a contract: For example, if the contract provides that the agent, a marketer, calls 5 major apparel companies on behalf of the customer, then that marketer has an obligation to make those 5 phone calls and ONLY those 5 phone calls. [9] A representative acting within the framework of the powers conferred by his contracting entity binds the contracting entity to the obligations it imposes on third parties. There are essentially three types of authority recognized in the law: real authority (explicit or implicit), apparent authority, and ratified authority (explained here).

Real authority can be of two types. Either the client may have expressly granted a power of attorney to the attorney, or an implied power of attorney may be granted. Authority arises from a consensual agreement, and its existence is a matter of fact. As a general rule, an executing agent is only entitled to compensation from the customer if he has acted within the scope of his actual authority and if he acts outside this authority, may be contrary to the contract and is liable to a third party for the breach of the implied warranty of authorization. An agent is obliged to reimburse money if the payment made to him is void from the beginning, so that the money was never received for the use of his client and therefore he is not liable to him if he did not actually pay it at the time of receipt of the withdrawal notification. But if he is not “caught with the money in his possession”, the agent is not responsible. A representative may be authorized to represent a client in negotiations and other transactions with third parties or to have decision-making authority. Two common types of agents are lawyers who represent their clients in legal matters and investment dealers who are hired by investors to make investment decisions for them. A contract is void or voidable if one of the parties is unable to enter into a contract. If the client and authorized representative are unable to do so – for example, . B if a minor asks another minor to negotiate or sign an agreement – the contestability of the contract cannot be taken into account. But suppose that only one or the other lacks capacity.

In general, the law focuses on the principal. If the customer is a minor or unable to do so, the contract may be cancelled even if the contractor is fully competent. However, there are certain situations where the agent`s ability is important. Therefore, a mentally incompetent agent cannot bind a client. An agent may not assume any new obligations incompatible with the obligations owed to the client. A representative may only represent the interests of more than one client, whether contradictory or potentially contradictory, after full disclosure and consent of the client. An agent cannot snatch an opportunity from the customer by using it for himself or by passing it on to third parties. The Agency must be issued in advance or adopted retrospectively; and in the latter case, there must be a certificate of recognition or a tolerance of the act of the mandatary, from which recognition can be reasonably implied. 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 Paul`s account. Lumber Yard, who doesn`t know that Arthur`s job ended the day before, bills Paul. Will Paul have to pay? Yes, because the termination of the agency was not communicated to Lumber Yard. It seemed that Arthur was an authorized representative. This issue is addressed in Chapter 12 “Liability of the procuring entity and the representative; Termination of the Agency”. Agents have the right to sue third parties for criminal acts committed against them in the course of their activities. First, they can assert claims for tort or prejudice against third parties that affect their possession of the property they own as enforcement agents. If an agent has been induced by the fraud of a third party to sell or buy goods for his principal and has suffered a loss, he may take legal action against that third party for such illegal act, deception or fraud. 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 produces no results other than the most common contract agency. Such a decision may be appealed under ORS 183.480 relating to a disputed case. [1973 c.835 §211; 1975 c.167 §3] 454.640 Application of standards by contract agents. People, especially business owners, regularly hire or appoint others to perform tasks on their behalf. The law of the Agency shall contain the rules governing the functioning of that relationship. Agency is a legal art term that refers to the relationship between a client and a representative. [1] A commercial agent (also known as a general manager) is a person authorized to act on behalf of another (called a principal or principal) in order to establish a legal relationship with a third party. The General Representative has the authority to carry out a wide range of transactions in the name and on behalf of the Client. The general agent may be the manager of a company or play a more limited but still continuous role – for example, as a buyer or as a life insurance agent authorized to register customers for the home office. In both cases, the general representative is entitled to modify the customer`s legal relationship with third parties. Someone who is called a general agent has the power to act in any manner required by the client`s business.