This website uses cookies to ensure you have the best experience. Learn more

Agency Relationship Essay

1406 words - 6 pages

Pavla Routová, ATP

2008/2009

Agency relationships

To start my essay, I chose a story that illustrates the topic. Imagine two designers, John and Peter, who work together under contract on a project for a client. It is a serious business. One day, John takes the complete project created by the two of them to the client and pretends it is all only his work. The client is satisfied and John obtains a big payment. Peter knows nothing about it and finds out only during the next encounter with the client. In this situation, John and Peter are in agency relationship and both have fiduciary duties to each other. They must put the best benefits of the client above their personal ...view middle of the document...

Models, actors, musicians or athletes have very often their agents to secure benefits and work opportunities for them. Today, in the busy world I think it is the best way. Agents take care of their contracts, and Principals, as all these models and actors could be called, don’t have to worry about it. The Agent represents the interests of the Principal. As far as the Agent has done what he or she was instructed to do, the outcome is the same as if the Principal had done it on his or her own. In business, it is impossible for one person to go everywhere and negotiate all the deals that are necessary to grow or maintain the business.

Looking at the Agency concepts we should distinguish different types of agents. There are three broad classes of Agents:

1. Universal Agents – they hold broad authority to act on behalf of the Principal, and they have a professional relationship with the Principal, e.g. as lawyer and client

2. General Agents - they hold a more limited authority, they represents the Principal in the ordinary course of his or her business over a continuous period of time.

3. Special Agents are authorized to conduct either only for a particular transaction or a specified series of transactions over a limited period of time.

But there is no clear division between who is a General and who is a Special agent. Solicitor, for example, could be a general agent if he is working for his client in a range of legal work, but he could be a Special agent if he only sells his client’s house. Other types of agents are for example Broker, Commission agent or Forwarding agent. A Broker negotiates agreements between the contractual parties, but he is not in possession of the goods or documents of title. They are most common in the commodity markets and exchanges. A Commission agent buys or sells the goods on behalf of the Principal, but there arises no contractual relationship between the Principal and the Third party. Commission agent acts as the Principal in the contract with the Third party.

Special type of relationship between Agent and Principal is a fiduciary relationship. The noun fiduciary comes from Latin fiducia, which means trust. In this case, the Principal puts special trust, confidence, good faith and reliance in the Agent, who has a special fiduciary duty to act for the best benefits of the Principal. The basic fiduciary relationship is Parent – Child relationship, typical fiduciary relationship exist also between attorneys and clients, confidential advisors and those advised, corporate directors and stockholders, etc. Characteristically, the fiduciary has greater knowledge or experience in the issues that are being handled. That is probably why this profession came into existence. For instance, some people are not confident in business or stock market or don’t have time to do the business, but they have money and want to spend it there. So, they find themselves an Agent, who knows how these things...

Other Essays Like Agency Relationship

Profession Essay

998 words - 4 pages for an agency, but the agency itself would. By spreading translation work over different translators, agencies can obviously absorb far more work from individual clients, which makes it possible to develop a more or less exclusive relationship with them and for you to gain specific experience of their organization and terminology without necessarily having to do all their translations. This suggests that, overall, not only your capacity but also

Notes Business Law Essay

1256 words - 6 pages relationship with K&M is that of a ________________. | b. | Broker | Question 10 1. Sam is retiring and selling his business to Ed, an employee. They want Larry Lawyer to draw up a sales contract that protects both Sam’s interests as the seller and Ed’s interests as the buyer. If Larry agrees to this dual agency, which agency duty would he most risk violating? | d. | The duty of loyalty | Question 11 1. A principal whose identity

Program Planning and Evaluation

911 words - 4 pages are what makes up the plethora of agencies still considered human service branches. The Human service agency I chose to work with this block is the Peace Domestic Violence Agency, I am pulled towards this agency because I can see not only does this help abused spouses in a relationship but also children who are most often times the unseen victim. an agency such as this opens up the spectrum for so many that may need to be reached, and on many

Scope & Nature of Managerial

981 words - 4 pages profit maximisation because: ◦ Profit measurement is fraught with the problems of accounting conventions and estimations ◦ Profit ignores the time value of money ◦ Profit ignores the levels of risk associated with the business activities ◦ Profit is a short-term measure ◦ Profit does not equate cash Agency Relationship in a Firm Due to the separation of ownership and management, an agency contract allows the management to act as an agent

Chester Bernard's Informal Organizations

692 words - 3 pages , Energize Your Team, and Get Better Results shows us the relationship that Bernard talks about when he states “The informal organization is a very useful and potentially powerful supplement to the formal” (Clarke, para. 5). Bernard’s work is relevant in today’s public/nonprofit agency because it helps to describe organizational behavior. The astute business/agency leader will be more conscious of the structure of their organization because of this work

Business Law

1488 words - 6 pages to Moser.Moser contends that Bertram is liable for his lost investment opportunity because Bertram owed him a fiduciary duty that was breached by Bertram's sale of the property to another purchaser. According to Moser, Bertram's fiduciary duty derives from Moser's agency relationship with Lee: Lee owes Moser a fiduciary duty because she is Moser's agent, Blue Chip owes Moser a fiduciary duty because the fiduciary duties of Lee are attributable to

Criminal Justice

1317 words - 6 pages offer any humanitarian aid the Japanese government needed. Because of the relationship shared between the two nations, it is only fitting that the United States comes to their aid. Conclusion It would appear that administrations have a direct influence on how disaster relief efforts are put in place. The Bush era and the Federal Emergency Management Agency director Richard Brown neglected to see the urgency in the Katrina/levee situation in

Advanced Contract Formation and Administration

1674 words - 7 pages trade secrets. The best form debrief can take is always prepare and make a detailed agenda. This is important because being unprepared is the surest way to lose credibility and the confidence of the contractor. A detailed agenda also deters protests since it provides a clear understanding to the vendor of the agency’s evaluation process and the basis for the source selection decision. It fosters a relationship of trust between the contracting agency

Research Paper

1628 words - 7 pages Ethical Dilemma No. 5 Many of the requests for my services as a behavior consultant come when agencies or schools are struggling with families and are at odds with what to do to help a child with his or her behavior difficulties. The agency or school provides the funding to pay for my services and is the one who initiates my involvement with the student. At times, my review of the case and the analysis of the data I have gathered lead me to

Administrative Regulations Assignments

1294 words - 6 pages 1. State the administrative agency which controls the regulation. Explain why this agency and your proposed regulation interests you (briefly). Will this proposed regulation affect you or the business in which you are working? If so, how? The subject of immigration is well known among students, workers, and employers, and in fact, to most everyone residing within the United States. For me, this topic is especially significant as I myself was

Dsadsad Dsa Dsa Dsa

881 words - 4 pages the principal, by either word or action, causes a third party reasonably to believe that the agent has authority to act, even though the agent has no express or implied authority l. Termination of relationship m. Fiduciary duties n. Agency coupled with an interest xviii. created for the agent’s benefit instead of for the principal’s benefit. o. Disclosed p. Partially disclosed q. Undisclosed

Related Papers

Marketing P5 Essay

699 words - 3 pages Relationship Marketing Relationship marketing is an activity that is aimed at developing and managing trusting and long term relationships with larger customers. In relationship marketing, customer profile, buying patterns, and history of contacts are maintained in a sales database. Kellogg's is using a strategy called "Direct Mail Drive" to communicate with over 1.5 million customers. They are working with agency Leo Burnett using integrated

Ownership Structure And Firm Performance Essay

1859 words - 8 pages results. The way literature is linking the owner ship with performance has always been via addressing the agency (outsiders and insiders) problem, board structure, size, leverage etc. but, literature is sparse to identify these variables as moderating the relationship between ownership and firm performance. The purpose of this study is to establish and study the relationship between ownership and performance in Indian context. Considering following

Organization Behavior Essay

882 words - 4 pages employee and providing customer service to external and internal stakeholders. The company that I worked for mission was to keep an open line of communication with employees and customers to increase sales and productivity. Good leadership in a company or criminal justice agency creates a pattern of working relationship which insures the achievement of the company’s goals and objectives. It provides the responsibility and accountability of

Pyc2601 Exam Paper

754 words - 4 pages the interview? 25. Do you have any questions? YES! You should always have questions! Direct Practice Questions 1. What is your understanding of service delivery in [a particular field or region]? 2. Tell me about a time you were in a disagreement over a treatment plan. 3. What has been your experience with agency paperwork and how do approach it? 4. How will you deal with the dual-relationship issues of working in a small community? © 2010