The Unilateral Termination Of The Agency Agreement By The Principal
In the context of the agency relationship, the actions of the agent in his relations with third parties infringe the legal rights of the client. What the third party knows about the agency contract is not relevant to the legal power of the agent. This authority goes from principle to the agent. As long as an agent has an explicit or tacit authorization, he can legally bind the client. Thus, the seller of a house cannot know the true identity of the buyer; the person he considers to be the potential buyer could be the representative of an unsused contractor. However, if the agent is allowed to make the purchase, the seller`s ignorance is not a reason for either the seller or the client to cancel the agreement. Generally speaking, a contracting entity is liable for unlawful acts only if the agent committed them “in the course of employment”. But figuring out what that means isn`t easy. The period of destructive of competition may not exceed a period of one year for the distributor and two years for the representative. If the agreement provides for the appointment of the staff member for a given period, the Agency shall automatically terminate on the expiry of that period. An agency may be terminated by acts of the principal or agent, as indicated below:- In the course of normal operations, agencies do not hold stocks.
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