The Estate Agents Authority’s (EAA) goal in publishing this monograph is to provide property company practitioners a normal understanding of the legal guidelines and rules referring to encumbrances in Hong Kong. With respect to the third party, no less than, the authority of the agent isn’t any less actual than it might be if it have been in conformity with the desire of the principal. The gross sales consultant is a dependent worker of a merchant who concludes contracts for the merchant exterior the business establishment.
The industrial agent negotiates and concludes contracts on behalf of his principal. He is liable, nonetheless, for another torts of his agent that both are authorized or the commission of which normally are made attainable by the agent’s position. Although a principal-agent relationship might be created by a contract between the parties, a contract just isn’t mandatory whether it is clear that the parties intend to act as principal and agent.
Necessity: The agent and principal have no agreement, however the agent has to act to stop an damage to individuals or property. An agreement creating an company relationship could also be express or implied, and each the agent and principal could also be both a person or an entity, such as an organization or partnership.
The competent agent is legally able to performing for this principal vis-à-vis the third celebration. The excellence between obvious and real lies reasonably in the justification of the agent’s acts in relation to the principal. A principal can revoke an agent’s authority at any time however may be accountable for damages if the termination violates the contract.
If a buyer enters into a purchase order settlement with the agent, the proprietor may be accountable for breaching that contract if she later agrees to promote the building to someone else. Below the principles of company legislation, directors are brokers of the corporate for which they act, and as such the general principles of the regulation of company in lots of respects regulate the relationship of the corporate and its administrators.