Agents & Principals - Essay Example

Agents & Principals In a business environment, two people have a great relationship in terms of undertaking day today activities. These are an agent and a principal who often find themselves in situations that join them together, something that requires a proper establishment of a strong tie and a linkage. As Miller and Jentz (2007) have noted, there is a creation of principal-agent relationship after which there follows distinct duties that both parties have to perform. It is worth noting that the duties are in accordance with their code of conduct that governs them.

Moreover, agents have a corresponding right to the duties of the principal and the reverse is true. Principals employ agents to buy or sell their property on their behalf while making numerous transactions in their absence. This aspect that is seconded by Rush and Ottley (2006) introduces some of the roles that agents have to play. They identify the as being competent and trustworthy, duties that are often set at the time of making the terms of a contract between an agent and the principal. Miller and Jentz (2007) highlight the duties of agents as having a responsibility in performance, loyalty, obedience, notification and accounting.

This aspect is still furthered by Gaines, Crawford and Coleman (2003) who in their book noted that agents have a role to use their skill, concern and care in any transaction that they make. On the other hand, principals have duties that they are also delegated. They are responsible for cooperation with their agents and to assist them where necessary. Additionally, they are supposed to check on reimbursement and indemnification in cases where agents themselves chipped in and used their money to accomplishing principals’ request, Miller and Jentz (2007).

In conclusion, it is the duty of a principal to provide secure working conditions in terms of offering good equipment and premises for their agents. ReferencesMiller, L. R. & Jentz, A. G. (2007). Business Law Today: The Essentials. Stamford, US: Cengage Learning.Rush, J. & Ottley, M. (2006). Business Law. Stamford, US: Cengage Learning.Gaines, G., Coleman,S. D., & Crawford, L. L. (2003). Florida R.E. Principles, Practices, & Law. Dearborn, MI, USA: Dearborn Real Estate Publishers.