The situation determines whether an employee is an employee or an independent contractor. Neither the company nor the employee can determine the employee`s status by agreement. As the North Dakota Workmen`s Compensation Bureau said in a bulletin to real estate agents, “The office has noticed that many employers require those who work for them to sign forms for `independent contractors` so that the employer does not have to pay workers` compensation premiums for its employees. Such forms make no sense if the worker is actually an employee. Vizcaino v. Microsoft Corporation, discussed in section 14.3.2 “Employees vs. Independent Contractors,” discusses the distinction. Usually, the general agent is a commercial agent, but there are circumstances in which a person may appoint a general agent for personal purposes. A common form of personal general agent is the person who holds someone else`s authority. It is a delegation of authority to another to act in his place; This can be achieved by running a simple form, as shown in Figure 14.2 “General Power of Attorney”. Usually, the power of attorney is used for a specific purpose – for example, to sell real estate or securities in the absence of the owner. But someone facing lengthy surgery and recovery in a hospital could give a general power of attorney to a trusted family member or friend. A commercial agency agreement is a legally valid contract that establishes a fiduciary relationship in which the first party (“the principal”) agrees that the actions of a second party (“the agent”) bind the principal to the agent`s subsequent agreements, as if the principal had entered into the subsequent agreements himself.

The representative`s power to bind the client is usually legally called power of attorney. An agency created by agreement may be a form of tacit power of attorney, for example, if a person hands over their credit card to a close relative, the cardholder may be asked to pay for purchases made by the parent with their credit card. It is important to understand how broad the capacity to act can be. If someone hires a contractor to rebuild the kitchen, they will hire many subcontractors (plumbers, electricians, etc.) to purchase materials (from suppliers), and the law states that you have become the customer of all these agents and sub-agents; Suppliers have the right to sue you directly for materials if they are purchased from subcontractors. See our article on mechanical privileges. The agency itself can be of extreme value to the representative, for example, if one obtains the right to represent a product or service in a jurisdiction, and the courts have long considered the rights that can arise in such a situation. In most cases, the agency agreement specifies what rights, if any, arise. In some jurisdictions, such as Europe, agents cannot simply be fired without making substantial payments for their lost property rights in the agency. In the USA, an agency can be revoked without a contract contrary to the client`s will if an agency is not associated with an interest and no third-party rights are affected. In some agreements or jurisdictions, the party terminating the agency must prove cause. Thus, where A concludes a contract under which B makes available to A, for a certain period, goods or services which both parties acknowledge are intended for use in a particular undertaking owned by A, A may not, in the absence of a specific clause providing for it, avoid its obligations under that contract: that he voluntarily sells his stake in the company before the expiry of the express clause of the contract. Where the right to terminate an agency contract depends on a contingency, the termination must be justified by establishing the occurrence of such urgency.

Carleno Coal Sales, Inc. v. Ramsay Coal Co., 129 Colo. 393, 398 (Colo. 1954). Loss or destruction of the Agency`s object or termination of the Client`s participation is another ground for termination of the representative`s authority. The agent`s authority ends when the agent becomes aware of the fact. However, the destruction of the object does not always result in the end of the representation, especially if the object can be replaced without significant inconvenience to either party.

In the case of transactions carried out by parties through an intermediary, the establishment of an agency relationship depends on the intention of the parties. In such cases, the terms used to designate intermediary status in the written document accompanying the transaction are not always conclusive. Factors to be considered in determining whether an agency exists and which party is the intermediary`s principal include the functions of the intermediary, the performance of those functions and the person for whose benefit they are performed. Carr v. Hunt, 651 S.W.2d 875 (Tex. App. Dallas, 1983) And there are as many other types of agency relationships as there are conceivable delegation agreements between individuals and between individuals and entities. An agent may not delegate his authority and cause services to be provided by a sub-agent without the express authorization of the principal, unless the nature of the business or custom so requires. A commercial agency contract to be executed to the satisfaction of the customer can be terminated by the customer at will. Similarly, a power of attorney that is not a standing power of attorney and is a simple power of attorney may be revoked at any time with or without giving reasons. The Special OfficerAgent contractually appointed to perform specially defined activities. is a person who is authorized to act only in a specially designated case or group of operations.

For example, a real estate agent is usually a special agent responsible for finding a buyer for the client`s property. Let`s say Sam the seller hires a broker in Alberta to find a buyer for his property. The Alberta commission depends on the sale price, which, as Sam explains in a letter to him, “certainly must not be less than $150,000.” If Alberta finds a buyer, Bob, who agrees to buy the property for $160,000, his signature on the contract of sale will not bind Sam. As a special agent, Alberta had only the power to find a buyer; She was not allowed to sign the contract. This distinction between agent and independent contractor has important legal implications for taxation, workers` compensation insurance and liability insurance. For example, employers are required to withhold income tax from their employees` paycheques. However, paying to an independent contractor, such as the rental plumber, does not require such a holdback. Deciding who is an independent contractor is not always easy. There is no single factor or mechanical response.

In Robinson v. New York Commodities Corp., an injured salesman claimed workers` compensation and claimed to be an employee of the New York Commodities Corporation. Robinson v. New York Commodities Corp., 396 N.Y.S.2d 725, App. Div. (1977). But the state Workers` Compensation Board ruled against him, citing various factors. The plaintiff was selling canned meat and running laps in his car from home. The company did not set hours of operation, did not control his movements in any way, and did not reimburse him for mileage or other expenses, or withhold taxes on direct commissions paid by him. He filed his taxes on a self-employed form and hired an accountant to prepare it for him. The tribunal agreed with the Compensation Committee that these facts established the seller`s independent contractor status.

Continuing powers of attorney are unique types of agency formations, and each state has specific laws that limit their scope and impact. They usually do not end without the direction of a competent client, but are created to maintain existence even if the client becomes incompetent.