Essay 2 - Neha Shah Business Law 2 Professor Rodriguez...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Neha Shah 10/04/2011 Business Law 2 Professor Rodriguez Essay 2 Principal is defined as in a law, a person who agrees to have another, called the agent, act on his or her behalf. The principal has the right to control the agent’s conduct in matters entrusted to the agent. Since the principals are using agents, they are able to conduct multiple business operations simultaneously in various locations. For example, contracts that bind the principal can be made at different places with different persons at the same time. An agent is a person who agrees to represent or act for another. A good example of an agent is a corporate officer who serves in a representative capacity for the owners of the corporation. In this capacity, the officer has the authority to bind the principal (the corporation) to a contract. Generally, the agent owes the principal five duties: performance, notification, loyalty, obedience, and accounting. Performance implies the condition in every contract which has the agent’s agreement to use reasonable diligence and skill performing the work. When the agent fails to perform his or her duties, liability for breach of contract may result. The degree of skill or care required of an agent is usually that expected of a reasonable person under similar
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/13/2011 for the course ECON 201 taught by Professor Bonistis during the Spring '11 term at NJIT.

Page1 / 2

Essay 2 - Neha Shah Business Law 2 Professor Rodriguez...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online