Armin Hohenadler

The main problem of the agent is so broad that it can occur in almost any context, and your daily operations can be tainted by these types of problems. Suppose you hire an external accountant to take care of the company`s books. By hiring the accountant, you have confidence that he will do the job as best he can. The accountant expects you to pay him the agreed rate for the work he has done. Agency Express: the client and the agent sign a contract or enter into an oral contract, with the adjudicator entity ordering the agent to make decisions on his behalf. Signing a retainer with a lawyer is a good example of an express agency. As long as the agent remains under the contract, you (the sponsor) are bound by the agent`s decisions. For external agents such as consultants and contractors, use the language of the contract clear and intentional to solve the agency`s problem. The link between the amount of the agent`s compensation and the performance of certain tasks or results can help balance your interests and you should be aware of the extent and limitations of the agent`s authority.

In general, it is up to headquarters to create incentives for it to act as requested by the customer. 3. Duty to be fair and in good faith with the agent: the sponsor must refrain from any action that could lead to a foreseeable loss to the officer if the officer is not guilty. [15] 1. The real authority is there when the officer acts on behalf of the client and reasonably believes that the client wishes to take this action. [4] The actual authority includes the „explicit“ authority in which the client tells the officer exactly what to do and the „implicit“ authority when the officer takes steps that are reasonably necessary to achieve the Agency`s objective. [5] Contracting entities may also restrict the authorities of agents or remove them at their convenience. For example, a client who initially instructed a broker to purchase a property may change the instructions to limit the broker`s power to lease the property. [6] Agency by ratification: Agency by ratification is actually the opposite of what most people understand the agency, because it occurs when someone presents itself as an agent of another fake. The agency is created when the client approves (ratification) the agreement after the fact.

Manufacturers and suppliers of products often use agents acting on their behalf to promote sales, both in the manufacturer`s home country and abroad. As a general rule, a formal agreement is signed to determine the commission collected by the agent, the territory, the duration and other conditions under which the client and the agent jointly conduct business. This is, in short, the agency`s problem – the agent could only act in his own interest to the detriment of the client.