LEGL 217 Chapter 32: Agency Formation and Duties

• School: Lansing Community College
• Department: Legal Assistant/Paralegal
• Course: LEGL 217
• Professor: David Brown

Document Summary

Principal-agent relationship : parties agree that the agent will act on behalf of and instead of the principal in negotiating and transacting business with third parties. Fiduciary : (n. ) the person having a duty created by their undertaking to act primarily for another"s benefit in matters connected with the undertaking (adj. ) the relationship involves trust and confidence. Employer-employee : as employees are generally agents of their employer, representations of fact made by a salesperson with respect to the goods sold are binding on the principal. Employer-independent contractor : may or may not involve an agency relationship. Independent contractors are not employees because the principal has no power over the details of their work performance. Employee or independent contractor: how much control does the employer exercise over the details of the work, most important factor, especially for the irs. While consensual, agency agreements need not be in writing and require no consideration.