Agency And Liability In The B.C. Partnership Act †Free Samples

Question: Discuss about the Agency And Liability In The B.C. Partnership Act. Answer: Introduction It can be stated that a relationship of agency is established between two people when one of the two acts as a principal and the other as the agent. The agent derives the authority to perform his function from the principal[1]. Such authority to be derived may be express or implied. In cases where the agent is involved in any wrongful act, it has been held that the principal is not required to expressly order his agent to commit such wrongful act. However the principal is held liable in some circumstances for the wrongful acts of his agent. Discussion Vicarious liability in the context of a principal agent relationship is referred to as the liability imposed on the principal for the wrongful act committed by the agent of such principal[2]. It is to be mentioned that according to section 7 of the British Columbia Partnership Act that a firm or a companys partner will be considered to be the agent of such firm or company when conducting business in the name of the firm or company. Further in accordance with section 7 it can be stated that any act of a partner of a firm which is done for the purpose of carrying on the business of the firm will be binding on all the partners. However there are two exceptions to the aforementioned rule as contained in section 7(2) which states (a) the partner so acting has in fact no authority to act for the firm in the particular matter (b) the person with whom he or she is dealing either knows that the partner has no authority, or does not know or believe him or her to be a partner. According to section 8 of the British Columbia Partnership Act any act done in the name of the firm with the intention to leally bind the firm by any authorized person will be legally binding upon the firm and all its partners. However as quoted in subsection 8(2) it can be said This section does not affect any general rule of law relating to the execution of deeds or negotiable instruments. Thus in light of the above provisions of the British Columbia Partnership act it can be stated that liability is imposed on the principal for the tortuous acts of the agent primarily for the following reasons[3]. The principal has the duty to select the agent and is the only person who can assess the strengths and weaknesses of the agent. The principal delegates the responsibility to the agent because of obtaining benefit from the acts of the agent and therefore should be considered responsible for the acts of the agent[4]. It is assumed and implied that the principal has given the agent the authority to commit the wrongs Conclusion Thus after analyzing the legal provisions of the principal agent relationships in accordance with the British Columbia Partnership Act it can be said that the all the partners of the firms act as agents of the firm while conducting business in the name of the firm. Therefore by the application of the principle of vicarious liability it is to be stated that the firm acts as the principal will therefore be liable for the acts of the partners. Bibliography 'Partnership Act' (Bclaws.ca, 2018) https://www.bclaws.ca/civix/document/id/complete/statreg/96348_01 accessed 25 February 2018 Chamallas, Martha. "Two Very Different Stories: Vicarious Liability Under Tort and Title VII Law."Ohio St. LJ75 (2014): 1315. Cole, Jeffrey. "Agency-Vicarious Liability-Abrogation of the Both Ways Rule."DePaul Law Review16.2 (2015): 478. West, Henry. "Vicarious Liability."American Legal Encyclopedia(2017).