possesses the authority to carry out a broad range of transactions in the name and on behalf of the principal. The general agent Someone authorized to transact every kind of business for the principal. These relationships can be summed up in a simple diagram (see Figure 38.1 'Agency Relationships'). It therefore deals with three different relationships: between principal and agent, between principal and third party, and between agent and third party.

Is Alden liable to Standish for stealing the heart of Priscilla-that is, for taking the вЂњprofitsвЂќ of the enterprise for himself?ДЄs these questions suggest, agency law often involves three parties-the principal, the agent, and a third party.

Suppose Alden had injured himself on the journey.

Could he, if he committed a tort, have imposed liability on his principal? Suppose, for example, that he had ridden at breakneck speed to reach PriscillaвЂ™s side and while en route ran into and injured a pedestrian on the road.How extensive was JohnвЂ™s authority? Could he have made promises to Priscilla on the captainвЂ™s behalf-for example, that Standish would have built her a fine house?.Here are some questions to consider, the same questions that will recur throughout the discussion of agency: Eventually, he wound up with the prize himself.

He attempted to carry out the assignment, but he did not perform according to expectations. Alden was the captainвЂ™s agent: he was specifically authorized to speak in his name in a manner agreed on, toward a specified end, and he accepted the assignment in consideration of the captainвЂ™s friendship. LetвЂ™s analyze this sequence of events in legal terms-recognizing, of course, that this example is an analogy and that the law, even today, would not impose consequences on Alden for his failure to carry out Captain StandishвЂ™s wishes. But Alden was so tongue-tied that his vaunted eloquence fell short, turned Priscilla cold toward the object of AldenвЂ™s mission, and eventually led her to turn the tables in one of the most famous lines in American literature and poetry: вЂњWhy donвЂ™t you speak for yourself, John?вЂќ John eventually did: the two were married in 1623 in Plymouth. Alden accepted his captainвЂ™s assignment, despite the knowledge that he would thus lose Priscilla for himself, and sought out the lady. Standish turned to John Alden, his young and eloquent protГ©gГ©, and beseeched Alden to speak on his behalf, unaware that Alden himself was in love with Priscilla. 1680), вЂњthe loveliest maiden of Plymouth,вЂќ on behalf of Captain Miles Standish, a valiant soldier who was too shy to propose marriage. His agency task-of interest here-was celebrated in Henry Wadsworth LongfellowвЂ™s вЂњThe Courtship of Miles Standish.вЂќ He was to woo Priscilla Mullins (d. He is said to have been the first person from the Mayflower to set foot on Plymouth Rock in 1620 he was a carpenter, a cooper (barrel maker), and a diplomat.

What does need to be taken into account, though, is the manner in which an agent acts on behalf of his principal and toward a third party.Д¬onsider John Alden (1599вЂ“1687), one of the most famous agents in American literature. A tort is no less harmful when committed by an agent a contract is no less binding when negotiated by an agent. The existence of agents does not, however, require a whole new law of torts or contracts. In a partnership each partner is a general agent, while under corporation law the officers and all employees are agents of the corporation. Indeed, it is not an exaggeration to say that agency is the cornerstone of enterprise organization. Likewise, partnerships and other business organizations rely extensively on agents to conduct their business. вЂњThe General,вЂќ as people say, exists and works through agents. We might say вЂњGeneral Motors is building cars in China,вЂќ for example, but we canвЂ™t shake hands with General Motors. No corporation would be possible, even in theory, without such a concept. Most organized human activity-and virtually all commercial activity-is carried on through agency. Why Is Agency Law Important, and What Is an Agent?ДЄn agent is a person who acts in the name of and on behalf of another, having been given and assumed some degree of authority to do so.

Agent and principal definition