What is an agency relationship?

Business & Finance
Tutor: None Selected Time limit: 1 Day

What is an agency relationship?

When you first begin business operations as a sole proprietor and you are the only employee with only your funds invested within the business operations, would any agency conflicts exist with your company or business? Please provide 166 words,please cite,and provide references.

Sep 28th, 2015

Thank you for the opportunity to help you with your question!

What is an agency relationship?

The law of agency is an area of commercial law dealing with a set of contractual, quasi-contractual and non-contractual fiduciary relationships that involve a person, called the agent, that is authorized to act on behalf of another (called the principal) to create legal relations with a third party.


Agent is liable to 3rd party for his own torts. 

Principal may be liable for Agent's torts if they result from:
- Principal's own tort.
- Principal's authorization of tort.
- Agent's unauthorized but fraudulent conduct made within scope of agency.
- Respondeat Superior .

Agent's Negligence

- Applies only to Employer-Employee relationships and not to Employer-Independent Contractor relationships.
- Principal/Employer is vicariously liable for Agent/Employee's negligence if committed within the Agent's "course and scope of employment."
--This is the doctrine of respondeat superior.

Scope of Employment

Employer is liable for:
- E'ee act authorized by employer
- was commonly performed by employees
- act advance employers interests
- did employer have reason to know employee would do the act
-was the act of detour

Employer not liable:
- act infrolic
- based in a serious crime

Agents Intentional Tort

- Principal liable for intentional torts committed within the scope of employment.
-- Employee is liable as a tortfeasor as well.

- Employer is liable for Employee's acts which Employer knew or should have known the Employee had a propensity to commit.

- Applies to Employer-Employee relationships and not to Employer-Independent Contractor relationships.
--Exception: hazardous activities


Please let me know if you need any clarification. I'm always happy to answer your questions.
Sep 28th, 2015

Please do not respond to anymore of my QUESTIONS. It appears that your answers are not original and are copied. 

Oct 5th, 2015

Sep 28th, 2015
Sep 28th, 2015
Oct 26th, 2016
Mark as Final Answer
Unmark as Final Answer
Final Answer

Secure Information

Content will be erased after question is completed.

Final Answer