Legal Terms - Agent
An agent is a someone who is authorized by another person (known as the principal) to represent them, typically in order to facilitate negotiations between the principal and a third party for the purpose of entering into a contract. If an agent reveals the identity of their principal, or at least acknowledges the presence of a principal, In a typical situation, the agent, who is representing the principle, does not have the right to get any advantages or be held responsible for the contract with the third party. An undisclosed principal refers to a party whose identity is not disclosed by the agent to a third party. Despite the lack of disclosure, the undisclosed principal can still receive the benefits and be held responsible for the contract. In such situations, the agent also has the right to receive benefits and be held responsible. Nonetheless, if a concealed principle fails to adhere to the terms of a contract or if the third party demonstrates a desire to enter into a contract with the agent directly, the principal may not be eligible to receive the contract's benefits. A general agent is an individual who possesses the power to represent their principal in all matters of a certain nature, or who works on behalf of the principal within the scope of their own customary business or profession. A special agent is granted authority solely for a specific purpose that is outside the usual scope of the agent's regular business or profession. The principle of a general agent is legally obligated by the actions of the agent that are related to the normal operation of the agent's business or the successful execution of their responsibilities, regardless of any restrictions placed on the agent's authority by the principal. However, when it comes to a special agent, the principal is not obligated to abide by actions that go outside of the granted authority. Regardless of the situation, the principal has the authority to validate an unauthorized contract. A sales agent may occasionally agree to safeguard their client against the potential financial loss resulting from the buyer's inability to pay. He assumes responsibility for the unreasonable non-payment of the products by the third-party buyer. An agent with the responsibility of guaranteeing the creditworthiness of a transaction is referred to as a del credere agent. The Commercial Agents (Council Directive) Regulations 1993 provide protection for a commercial agent who sells goods. In certain situations, such as termination of the agency or death of the agent, the agent has the right to receive compensation or indemnity payment
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