C/L/130. Commercial Law Ï The Role of the Principal, Agent and Third Party:

This paper focuses on a series of case studies that identifies the role of hiring an agent in commercial law. This paper analyses the role of an agent whereby it illustrates that the key element is that the agent acts within line with the Principal's interests. Therefore this paper argues and provided the legal authority that illustrates that the agent must do as the Principal requests in their contract; otherwise she is liable to indemnify any losses that occur due to unauthorized actions. It also illustrates that the agent owes a fiduciary duty to the principal and as the third party is not privy to the contract and if the agent holds one of the three types of power then the principal is bound to the contract with the third party. Therefore this paper must provide the following background information in order to correctly advise each of the parties; therefore this discussion must consider the elements of fiduciary duty that the agent owes to the company; as well as privity of contract in relation to exceptions. In addition this discussion will also consider the situations the Third Party can enforce the contract.