Business Law Essay

4891 WordsNov 28, 201120 Pages
BUSINESS LAW CASE 2 1.IS UMAIRA AGENT Broker: A broker is a special type of mercantile agent who acts as a middleman between the buyer and the seller. We can say that he is employed to bring about contractual relationship between the principal and the third party. He usually gets commission for the work performed. His function ends when he brings the two parties together. He is never in possession of the subject, therefore cannot exercise the right of lien. Duties Agent's duties include: to (1) act on behalf of and be subject to the control of the principal, (2) act within the scope of authority or power delegated by the principal, (3) discharge his or her duties with appropriate care and diligence, (4) avoid conflict between his or her personal interests and those of the principal, and (5) promptly hand over to the principal all monies collected on principal's behalf. Principal's duties include: to (1) compensate the agent as agreed, and (2) indemnify the agent against claims, liabilities and expenses incurred in discharging duties assigned by the principal. See also master servant rule. Rights Of Agents § 259. We now come to the rights of agents, in respect of their principals and third persons. Every agent is entitled to a compensation for all services done by him in respect to the agency, unless there be a special agreement between the parties to the contrary; or unless he be a gratuitous agent or mandatary; or unless the service be in respect to some matter which is illegal, or immoral, or in contravention of public policy. And the agent is entitled to the commission, even though the principal himself make the sale directly, provided the result were effected through the means of the agent.2 So if the principal declines to sell after the agent has procured a purchaser, and rescinds the agent's authority, the agent is entitled to a reasonable

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