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Posted: September 5th, 2022
Agency law refers to the relationship
Law
Agency law refers to the relationship that is created when one individual or a party (also referred to as the principal) engages another party (the agent) to work on their behalf-for instance, to do his work, to manage his business, or to sell his products. Therefore, agency law oversees the legal relationship in which the agent deals with a third party on the principal’s behalf. An agency can be created by agreement; this is formed when the parties involved agree on certain stipulations (Munday, 2010). An agency can also be formed by ratification. This is where a party agrees to be an agent via a 3rd party. The agency relationship is created provided that the principal is notified and approves the agreement. There is an agency formed by operation of law as well. At times, courts will intervene and perceive an individual to be an agent even if an agency agreement does not exist. In this scenario, the agency was created by agreement; therefore, the business is liable for the improper order. By creating an agency relationship with his friends, the owner intended them to work on his behalf, and hence liable for their actions.
The employment-at-will doctrine makes it possible for a worker to quit their job anytime they want and for any reason, and at the same time, employers have the liberty to fire a worker for any reason without providing a cause or notice. This doctrine has several exceptions, and one of them is public policy. This policy prevents employers from terminating workers for exercising rights under other laws that were created to safeguard the worker (Miller, 2016). Another exception is the covenant of good faith; this requires the employer and worker to be fair and candid with each other, and not undermine the other’s benefits or rights. The last exception is implied contract. This means that a worker may have an expectation of a fixed term or even indefinite employment on the basis of something the supervisor has done. Pursuant to the doctrine, my employer cannot fire me if he dislikes my hairdo. This is because I am protected by the covenant of good faith exception. According to this exception, my employer must have just cause to fire me-such as insubordination, poor performance, or violation of company policy. My hairdo does not fall under any of these categories.
References
Miller, R. L. (2016). Cengage advantage books: Business law today, the essentials: Text and summarized cases. Cengage Learning.
Munday, R. (2010). Agency: Law and principles. Oxford University Press.
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