Agency relationship

Replies of at least 200 words by 11:59 p.m. (ET) on Sunday of the assigned Module: Week. For each thread, students must support their assertions with at least three (3) scholarly citations in Bluebook format. Each reply must incorporate at least two (2) scholarly citation(s) in Bluebook format. Acceptable sources include the course textbook, scholarly/academic/peer-reviewed articles, other books, and the Bible (though the Bible counts as only one (1) source). Reply from Sharniece What is an agency relationship? An agency relationship is defined as the fiduciary relationship that arises when a principal person manifests assent to an agent that the agent shall act on the principals behalf and subject to the principals control and the agent manifest assent or otherwise consents so to act. The agency relationship consists of three elements: assent, control by the principal, and the agents acting on the behalf of the principal Barry S. Roberts, Smith & Robersons Business Law, pg. 374 (18th ed, 2023). This can be manifest through oral or written words. For example, an office director approaches his assistant with a list of supplies needed for the office. The director ask the assist to purchase the items on the list using the company card. The assistant politely agrees, and follows the directors instructions. The director is the principal, and the assistant is the agent. What duties do a principal owe to an agent? Compensation: The principal has a duty to see that the agent is compensated for all of their work. Reimbursement: The principal has a duty to the agent to make sure theyre reimbursed for ant expenses incurred while performing duties requested by the agency. Indemnification: While the agent is working for the agency, and is properly performing the job duties the principal is responsible for any losses like being legal claims. Good faith: The principal has a duty to always be honest, and upfront with the agent at all times. Having sincere intentions and being fair. Never taking advantage of the agent. What are the differences between a disclosed principal, and undisclosed principal, and an unidentified principal? What is the liability of both the agent and the principal respectively , on contracts by an agent of each of the three types of principals? Disclosed principal is when an agent and third party interact, the third party has notice that the agent is acting for a principal and also has notice of the principal identity Barry S. Roberts, Smith & Robersons Business Law, pg. 405 (18th ed, 2023). For example, an assistant is directed by the office manage to order supplies for the office. While placing the order the assistant informs the supplier that the order is on the behalf of her manage, giving the name and office. The agent liability when acting for a disclosed principal depends on whether the agent acts within her authority in making the contract otherwise assumes liability on the contract Barry S. Roberts, Smith & Robersons Business Law, pg. 405 (18th ed, 2023). Unidentified principal is when an agency and a third party interact, the third party has notice that the agent is acting for a principal, but does not have notice of the principals identity Barry S. Roberts, Smith & Robersons Business Law, pg. 406 (18th ed, 2023). For example, a salon manager is directed by the salon owner to purchasing supplies for a salon from distributor. The distributor is aware that the salon own is purchasing the product for a salon, but he does not know which salon. The salon owner is an unidentified principal. If the agent is actually or apparently authorized to make the contract, then both the agent and the unidentified principal are liable Barry S. Roberts, Smith & Robersons Business Law, pg. 406 (18th ed, 2023). Undisclosed principal is when an agent and a third party interact, the third party has no notice that the agent is acting for a principal Barry S. Roberts, Smith & Robersons Business Law, pg. 406 (18th ed, 2023). While the assistant is purchasing supplies, she does not tell the supplier the products being purchased are for a salon, nor does she disclose the owner. The salon owner is an undisclosed principal. The agent is personally liable upon a contract she enters into with a third person on behalf of an undisclosed principal Barry S. Roberts, Smith & Robersons Business Law, pg. 406 (18th ed, 2023). Short case study response. In this scenario, Albert was acting as an authorized agent for Patricia. During the transaction Albert used his own name to purchase the widgets. Albert never disclosed Patricia as the principal. Albert is acting on Patricia behalf. According to undisclosed principal both parties are liable.