This Assignment essay question was taken from: The Faculty of Law, Sample LAW 100 Law in Society Exam. It was the AUTUMN SESSION TAKE HOME EXAMINATION 2002.
PART B.
QUESTION ONE.
The law promotes and facilitates business activity in many different ways. From the following list select two areas of law and describe the way in which the promote and facilitate business activity:.
a) Security contracts.
b) Agency law.
c) Voluntary administration.
d) The statutory implied terms in the Sale of Goods Act (NSW) and the Trade Practices Act (Cth).
.
The two areas chosen for discussion for the purposes of this assignment are: .
B-AGENCY LAW and .
D- THE STATUTORY IMPIED TERMS IN THE SALE OF GOODS ACT (NSW) AND THE TRADE PRACTICES ACT (CTH).
PART ONE HOW DOES AGENCY LAW PROMOTE AND FACILITATE BUSINESS ACTIVITY.
The law of agency is detailed in its provision towards helping business activity. This includes setting out what gives one capacity to act as either a principal or an agent, what authority an agent holds in respect to commercial or business activity, what the duties of the agent are, their rights, liabilities of the agents, the circumstances under which an agency is terminated and the statutory regulation of agents. All this is clearly defined so as to make it easier for any given business activity to take place without any legal wrangling with respect to agency.
WHAT IS AGENCY?.
It is a contractual relationship between two parties i.e. the Principal authorizes another party (agent) to do on his or her behalf various acts, which directly affect the principal's actions in relation to third parties. This gives rise to a legally recognized special relationship (fiduciary relationship), which imposes a high level of trust and responsibility on the agent (http://artslaw.com.au/reference/info01/). .
One of the basic requirements of any agent is to act towards improving the rights and situation of the principal to the best of his ability ensuring that in now way does he compromise the position of the principal.
