BUA 220 Lecture Notes - Lecture 3: Limited Liability Partnership, Law Of Agency, Independent Contractor
16 Feb 2016
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Document Summary
Principal-agent relationship, agent acts on behalf of principal when negotiating business with third parties (common between employee/employer) Agency law (from common law) and employment law (from statutory law) overlap considerably (employee-employer relationship) Independent contractors do not comply with the employment laws (employer not responsible for actions of ic) avoid certain tax liabilities by doing this. Agency by agreement express written contract, or oral agreement, or implied by conduct. Agency by ratification contract by non-agent, but principal affirms by word or action. Agency by estoppel someone who is not an agent makes another believe that they are. Agency by operation of law spouse buys necessities under other spouse"s name. Principal"s duties to agent: compensation expects payment, reimbursement & indemnification compensate any costs incurred defending lawsuit, cooperation assist the agent in performing their duties, safe working conditions. 2. employee: how much control can an employer exercise over the details of the work? (most important factor if control a lot then employee)
