The Legal Aspect of Purchasing and Supply

“The Legal Aspect of Purchasing and Supply”

1. What does the law of agency mean? The law of agency is an area of commercial law dealing with a contractual or quasi-contractual, or non-contractual set of relationships when an agent is authorized to act on behalf of another called the principal. To create a legal relationship with a third party it may be referred to as the relationship between a principal and an agent whereby the principal, expressly or impliedly, authorizes the agent to work under his control and on his behalf. The agent is thus, required to negotiate on behalf of the principal or bring him and third parties into contractual relationship. This branch of law separates and regulates the relationships between: agents and principals, agents and the third parties with whom they deal on their principal’s behalf and principals and the third parties when the agents purport to deal on their behalf.

a. The law of agency is the body of law that addresses the rights, duties, and related obligations arising from a principal-agent relationship, i.e., when one person acts on behalf of another. For example, a real estate agent has the authority to offer property on behalf of the owner, or an attorney has the authority to represent the client and, in some cases, bind the client. Agency relationships are very common.

2. What is the UCC? Created in 1952, the Uniform Commercial Code (UCC) consists of uniform rules coordinating the sale of goods and other commercial transactions throughout the 50 United States. The Uniform Commercial Code is the oldest and most intricate uniform act established by the National Conference of Commissioners on Uniform State Laws (NCCUSL). The Uniform Commercial Code (UCC), a comprehensive code addressing most aspects of commercial law, is generally viewed as one of the most important developments in American law. The UCC text and draft revisions are written by experts in commercial law and submitted as drafts for approval to the...