Agency Formation and Management Perspective Research Paper

Agency Formation and Management Perspective - Research Paper Example Agents must at all times work as per the instructions of their principals. You have clarified the areas where the law of agency plays critical role. For instance, regulating the principal-agent relationship, the external relationship between the agents and the third parties and the third parties and the principals in case the agents are purporting to deal on their behalf (Munday, 2008). The areas that you have said that the agency relationships are common are very sensitive as well. You have mentioned employment, financial advice and contract negotiation. All of these are very important areas in the economy and since agents are used in most cases, there must be some law so that the agents end up doing according to their principals and also as per the expectations of the third parties. Finally you have brought in the aspect of independent contractors. Like you have said, these play the same role as the agents only that they are used by small businesses. They are independent of the small businesses hence their