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Agency relationship FL essay
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Agency
1A. In the event that Peter is terminating his agency relationship with Alice he should do so in line with the agency contract that first established their relationship. Peter reserves the right to retract his agency relationship with Alice any time but he will be held liable for damages because his decision amounts to violation of the contract that he fashioned with Alice. Peter is supposed to pay Alice $1,080 (6% of $18,000) as this is the amount that the Principal would have earned if he had proceeded with the contract. This serves to indemnify Alice for the commission she was deprived by Peter’s action to rescind the contract without issuing any notice thus compensating the agent for her efforts and for specific performance.
1B. Alice, the agent has the duty to be loyal and act solely in the interest and for the benefit of Peter, her principal. As such, Alice is prohibited from acting as a representative of two principals in one transaction unless both are aware and consent to the same. Alice will not be able to obtain the
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Capital is a major factor for decision making. Since the business involves a group then the three forms of business exposes the group to a greater capital availability. The liability of members is also an important factor. The partnership offers unlimited liability to the members of the partnership while the corporation and Limited Liability Company allows the members limited liability and thus their personal assets cannot be interfered with in the event of a liability. The decision making process is for the business associations but the input of all members results to the making of good and informed decisions. Finally, the taxation practices for various forms of associations informs the decision. Corporations are often taxed twice whereas the LLC and partnership business is taxed
Maria had spoken with Eva over the phone concerning the correct total amount of $60,000 for rendering decorating services provided by Eva. Maria had sent a letter of the telephone conversation stating that Eva agreed to take $60,000 in full satisfaction obligation under the contract. Although Eva, changed her mind when depositing the check in the bank, she legally entered a mutual agreement over the telephone where it resulted in a unliquidated debt, payment is lower than actual.
LLCs must typically pay more fees to file as LLCs compared to some other business entities or sole proprietorships. Additionally, many states require yearly renewal fees. However, these fees are usually less than what some other corporations have to pay. Because of the protections afforded to LLCs, some types of businesses are ineligible to file as LLCs. Banks, insurance companies, and medical service companies are examples of businesses that can not be a LLC. Another big disadvantage is taxes. Although LLC’s allow owners to avoid federal taxes, you may actually end up paying more than it would with a different corporation, depending upon the nature of the business. Working with an accountant and/or tax lawyer is a really good idea when planning your business and forming your LLC but can also be quite expensive. The LLC business form is a relatively new concept. As a result, not a lot of cases have been decided surrounding LLCs. Case law is important because of predictability. If you know a court has ruled a certain way, you can act in a specific way to protect yourself. But if not many laws have been established yet, there is a certain vulnerability with your corporations that could expose you to greater
Alfalfa, a novice rock climber, decided to go on a very difficult climb. Half way up, he found himself in trouble. Darla, a more experienced climber, at great peril to herself, rescued Alfalfa from almost certain serious injury, if not death. Alfalfa was so grateful for what Darla had done that he promised to send her a check for $1,000. Alfalfa failed to send the check and Darla sues him for breach of contract. Judgment for whom? Explain.
“Agency relationships are formed by the mutual consent of a principal and an agent.” (Cheeseman, p.487) Our book goes on to cite the Restatement (Second) of Agency,
Partnership – “A legal entity formed by two or more co-owners to operate a business for profit.” (Longenecker, Petty, Palich, Hoy, Pg. 202) In a partnership, the advantage for the owners is the capability to reduce the workload and the financial burden, especially if each partner has management skills that enhances the business. The disadvantages of a partnership such as personal conflicts and leadership expectations, therefore this organizational form should only be chosen once all other options have been considered.
PART B: CAN GRACE CLAIM DAMAGES FOR: i) $25,000 spent in the leasing larger premises and placing advertisement ii) $20,000 paid to fulfil the contract with
I am however, authorized to consent to a settlement of the third-party action for a gross amount of $480,000.00 contingent upon the following conditions, that the attorney fee is $157,232.42 and the expenses on the file are $8,255.54. The self-insured employer current Workers’ Compensation lien is $99,290.61 and that the employer, Orange Ulster BOCES, will reimbursed $65,065.14 from the proceeds of the third-party action in full satisfaction of its lien. This represents
The burst of the housing bubble in the US caused the collapse of financial institutions and the bailed out of banks by governmental institutions resulting in the 2008 financial crisis. One of these banks was the Royal Bank of Scotland who ran out of money. Bankers were blamed for acting out of self-interest and making risky decisions. These failures will be analysed in this essay by giving answer to the following question: “How did agency theory contributed to the 2007 financial crisis?”
INTRODUCTION Partnership working is a key factor in any organization. A quality partnership in which common goals are shared and communication is done fairly and openly, obviously generate positive results which have as ultimate beneficiary the service users , the organization itself and other categories of professionals involved in the care act. Partnership presumes th • Strengths Key ingredients that lead to a good partnership working must be based on a Good Communication. This must be clear honest and open. In conjunction with multi-disciplinary team is a main key point to ensuring a streamlined approach to care.
(b) the other party does make the contract in the course of a business; and
If the principal has hired the agent with the express nature of not wanting identity revealed then this is of the most importance. The agent must also represent themself in the best interest of the principal and not make decisions that are out of their parameters to make. Deals cannot be made without prior consent of the principal. Not only is this an ethical obligation but a legal obligation as well. When representing someone else you must never let your own opinions or preferences interfere with the overall picture of why you are
The principal/agent relationship is a sensitive kind of relation. The agent has the obligation to obey the rules that are formed by the principals, direct the actions to achieve the organization’s goals, create public value, and be loyal to the principals by not performing according to self-interest. However, the agent is responsible to conduct ethical behavior while doing the required job. Agent is accountable also to serve the public according to their expectations, yet agent has to be ethical in applying the rules. The problem in the principal/agent relation starts when the principal is not ethical as it might seems serve self-interests instead of serving the public or might cause some harm to others. Thus, the principal is having the higher authority and the agent is having the obligation of following rules and at the same time maintains the public trust. This situation is considered to be ...
An agency relationship is formed between two parties when one party (the agent) agrees to represent another party (the principal). Normally, all employees who deal with third parties are considered agents. Principal-Agent relationships are defined as the understanding that the agent will act for and on behalf of the principal. (Cheeseman) The agent assumes an obligation of loyalty to the principal that he will follow the principal’s instructions and will neither intentionally nor negligently act improperly in the performance of the act. An agent cannot take personal advantage of the business opportunities the agency position uncovers. A principal-agent relationship is fiduciary, meaning these obligations bring forth a fiduciary relationship of trust and confidence. As such, an agency relationship is governed by employment law.
Terminating Counseling Sessions and Relationships Termination of services is not always agreement. There are circumstances that develop that can allow a counselor to terminate counseling services against the client’s wishes and better they have received everything the client needs from therapy. According to the American Counseling Association (ACA) Code of Ethics (ACA, 2014, A. 11.c.), counselor’s should provide pre-termination services better ending the counselors service with their clients. Also, the counselor should recommend other services to the client if it is necessary. Therefore, the counselor should discuss termination services with the client in advance before the final session.
(b) It must be made to a body of persons acting on the behalf of the persons.