Running head: MANAGEMENT OF EMPLOYEES CONDUCT
Agency Law
Name
Institutional Affiliation
Instructor’s Name
Course
Date
1
MANAGEMENT OF EMPLOYEES CONDUCT
2
Agency Law and Management of Employees Conduct
Agency relationship consists of an agreement between two parties where one party
performs the obligated activity on behalf of the other. The term principal is used to refer to the
party to whom the action is performed while the agent refers to the acting party (Jennings, 2014).
An example is a master-servant. The master supervises the activities done on his/her behalf by
the junior. The servant is always under the master's ruling unless it is an independent contractor
for instance in the field of law jurisdiction, the lawyer is under an independent contract. The
business contacts acts regulate the agency relationships between the master, servant and third
party. Agency is created through rectification where the master or principal decides to honour a
contract done under unauthorised terms by the agent.
There are set regulations under the agency creation acts. The agent is obligated to honour
agreed terms and conditions, obedience to given instructions and acts of law (Jennings, 2014).
The principal is responsible for reimbursement and payment of work, provision of conducive
work environment, and motivation to the agent. The principal is held liable for all contracts done
by the agent under apparent authority. Partial disclosure of principal is where the agent hint that
there is a principal but does not dispose of who it is; third parties can hold either the principal or
the agent liable. The undisclosed principal is the state where the agent fails to disclose there is a
principal; the former stand-alone unless the principal appears.
Principles are generally not held liable under violation of torts violated by independent
contractors. The principle can only be sued under the law of torts in case of malicious dangers,
reckless hiring of independent contractors or the principle participated in the formulation of
action instructions (Jennings, 2014). Agency can be terminated at will, time elapse, agent firing,
MANAGEMENT OF EMPLOYEES CONDUCT
3
the act of law or death or incapacitation of either party. Lapse by will has an indefinite period.
On termination at will, employers are obligated to the providence of clear reasons for firing and
filing any written document that can be provided before the court of law in case of unclear terms
of firing. Employees are advised to expose their hazardous conditions to the management staff
for ease in rectification.
Response #1
Hi, I concord to your logical argument that summarizes the aspect of agency law and the
applications, legal entity and contract governance. The features of agency law and the regulation
structure formulation in every country seems to be similar though stated under different
nomenclature under acts of law (Jennings, 2014). The master-servant concept is evident in the
society and the aforementioned characteristics recorded from the field of contracts. Under the
torts, the master is held liable for the legally transacted contracts on his/her behalf and any
violation is adequate to remedies to damages under articles governing torts. The plaintiff is
entitled to remedies of breach of contract, defamation or negligence by the defendant.
Response #2
Hi, I totally correspond to your cognitive ideas in the concept of party obligation and,
personal liability and the data on termination of agency. The responsibilities of the principals
towards the agent include motivation and correction of the agent for better deliverance of
services to the prospective customers in case of business contracts and better representation of
the principal in case of personal matters like judicial precedents (Valentin & Jasani, 2017). The
termination of agency by will is due to end of agreed period, fulfilment of the agreed duties or
firing of the agent by the principal; an individual or firm management. The principal is obligated
MANAGEMENT OF EMPLOYEES CONDUCT
4
to maintenance and deliverance of a good clearance certificate with no negative response
towards the fired agent in case of reference from a prospective employer.
Duties Owed by Agency Parties
The principals owe payment obligations to the agents. According to the acts under bill of
employer's rights, the principles are obligated to make meaningful salaries and commissions
towards their agents (Valentin & Jasani, 2017). The salaries are to be paid on or prior to the
agreed date. Late payment is termed as violation of working ethics. The principal also owes
rights to reimbursement to the agent. This is simply indemnification or compensation done by
the principal to the agent for expenses incurred by the latter during the contract period on behalf
of the business. This comprises liabilities and claims catered for by the agent. The principal is
also entitled to act in accordance with the terms agreed in the contract.
An agent owes the principal the responsibility to use his or her talents and to look out for
the principal's best interests. Before enabling an agent to deal on their account, the principal
evaluates the agent's abilities (Valentin & Jasani, 2017). It suggests that the agent should use his
or her talents to enhance the principal's interests throughout negotiations. When assessing the
agent's standard of loyalty, the agent's abilities and occupation are also taken into account. Due
to a lack of technological abilities, a bookkeeper cannot perform a duty of care in the educational
field. Agents owe the right of loyalty to their principals. They are obligated not to acceptance of
bribes from third parties in absence of their employers.
The agents owe the principles a responsibility to keeping of account. The agent is
obligated to keeping and analyzing books of records for all transactions done during the trading
period on behalf of the principal (Valentin & Jasani, 2017). The information stored in form of
MANAGEMENT OF EMPLOYEES CONDUCT
accounting documents or files should be clear, relevant and easily accessible by the principal in
case of queries about the financial progress of the agreement. It is the agent's duty to determine
the types of accounts to keep for different transactions to avoid confusion and accounting
bulkiness during analyzing of the data. There should be similarities in accounts for different
trading periods for uniformity in analyzing.
Apparent Authority Limiting
The apparent authority is the powers of the agent, although not expressly or implicitly
granted, to function on behalf of a principal. This power only comes when, according to the
conduct of the principal, a third party reasonably inferred that the principal granted the agent
such power (Sun, 2021). The notion of undue influence protects foreign entities who, unless it
was believed that satisfactory observers were to incur losses where the agent's signature will
never bind its principal. In general, where an officer has impedance, the principal of the agent is
responsible for the behavior of the agent in respect to which the apparent authority is concerned.
The principal of any firm, company or organization, too, creates apparent authority. This
is contrary to the actual superiority granted to the agent. The principal comes up with apparent
authority a as a result of how he/she primarily acts towards third parties who rely reasonably on
the behavior of the principal (Sun, 2021). Such behaviour could include the absence of an
objection to the illegitimate actions of one employee or the blackmailing of the worker with all
authoritarian tramples in order to trick an innocent third party who relates to the conduct of the
principal to its own advantage. The organization limits the degree of this power by imposing
guidelines to the agents on matters to handle and leave others for the action of the principal.
5
MANAGEMENT OF EMPLOYEES CONDUCT
Apparent authority can sometimes crop up, for example, through the granting of power
over office materials, office supplies, forms, vehicles, or the allowing out of a company's
headquarters, to an agent. The third-party depends on the action of the principal towards the
functioning and recording of the agreements between the agents and the third parties (Sun,
2021). This apparent authority is commonly bestowed to the agent at the time of contract
signing. It can be limited by the act of the contract breach, agreement or act of management of
the organization. The organization management comes up with new laws of conduct to govern
the mode and levels of transactions or businesses attended to by the agent.
6
MANAGEMENT OF EMPLOYEES CONDUCT
7
References
Jennings, M. M. (2014). Business: Its legal, ethical, and global environment. Cengage Learning.
Sun, X. (2021). Jilin Jinhe Real Estate Development Co., Ltd. v. Sichuan Longhai Huifeng
Industry Co., Ltd.(Dispute over Pooling Contract): Judicial Determination of the
Establishment of Apparent Agency. In Selected Cases from the Supreme People’s
Court of the People’s Republic of China (pp. 255-264). Springer, Singapore.
Valentin, P., & Jasani, A. (2017). Free agents? Property Journal, 50.