09 Sep Agreement Agency Relationship
An agency is when one person (the procuring entity) authorises another (the agent) to represent it and to perform certain acts on its behalf. The power conferred by the procuring entity may be explicit or tacit. In other words, an agency relationship can be established if a person expressly agrees that another person is acting on his or her behalf or behaves in such a way that consent is implied. We can therefore conclude that the acquisitions made by Ms Green under that agreement are made as representatives of the other two persons and on their own behalf to Ms Green. We can accept that Ms. Green acts on behalf of the other two persons and on her own behalf as a representative of the expenses incurred in setting up the office (i.e. offices, furniture and equipment, distribution companies) and her day-to-day operational requirements, including the payment of invoices. One of the ways in which an agent`s fiduciary duty serves to limit the agent`s actions is through secret profits. Without the agreement of the contracting entity, an intermediary may not benefit from any financial advantage through which the intermediary is remunerated. The contractor may not allow its interests to conflict with the obligations due to the contracting entity. The agent is responsible for the gains generated by the use of opportunities or knowledge from the trust. For example, an agent is responsible for acquiring certain real estate on behalf of a principal. If, by chance, the agent owns an interest in such real estate and decides to sell it to the client without revealing this fact, the agent may breach his fiduciary duty if he derives a financial benefit from the sale.
(1) obligation to act in accordance with the explicit and tacit provisions of a contract: if the contracting authority does not comply with this obligation, the contractor may assert a right to compensation for an infringement.  In one example, a vendor decided to divide a large piece of land into separate lots. He enlisted an agent to plan and map the new development, and they agreed to spread the profit 50/50. The agent invested time and money in setting up this new business, but then the seller changed his mind and resid the contract. The Tribunal found that there was an infringement and that the officer was entitled to all the benefits he would have received under the agreement.  In areas of social distress, the courts have stated that an agency exists if no agreement has been reached. . . .