Agency relationship refers to a consensual relationship between two parties, where one person or entity authorizes the other to act on his, her or its behalf. Agency relationships exist as mutual agreements between individuals, small firms and large organizations. They establish a system of control and conduct where one party gives up control to the other, letting the second party make decisions and take actions.Know More
In an agency relationship, one party acts as the agent while the other assumes position of principal. The agent provides and performs services on behalf of the principal, with the principal's full knowledge and authorization. The agency and principal engage in a binding partnership, benefiting from each other's engagement in the relationship. Agency relationships function as fiduciary partnerships, giving the agency responsibility for acting in manners benefiting the principal.
Agents and principals may initiate agency relationships in several ways. These relationships primarily arise through contractual agreements. These agreements exist as written and legally binding documents outlining and enforcing, through signatures of all parties, terms of the contract. Ratification, which uses written or verbal verification, confirms the intent of principals for acting on behalf of agents. Relationships form through estoppel as well, which involves the discretion of a third party, and by operation of law, where courts and judges administer control.Learn more in Business Resources
A person can buy a franchise by comparing two or more potential franchises, studying three-year percentages on the turnover, comparing prices, looking at the franchise size, watching the franchise in operation and signing a contract, according to The Wall Street Journal. Learning about the franchise is imperative before agreeing to a contract.Full Answer >
Prioritizing information allows a person to lead with his head, using intellectual smarts and good organizational skills. Being capable of identifying the most important tasks to be completed, before less urgent tasks, enhances productivity.Full Answer >
The end section of a business letter is polite, respectful and leaves a positive impression on the person the letter addresses. The exact way a business letter ends depends greatly on the degree to which a relationship has been established.Full Answer >
A notary acknowledgement is a legal declaration of a signature before a person with authority or a public official. The public official can be a mayor, a judge or a person in authority.Full Answer >