Agency Law and Business Entities-

Franchise, sole proprietorship or corporation: which do I learn? at that place argon many stage furrow entities to choose from when starting and operating a line of products. How does one choose the take up fit for their goals and the goals of their new business? Well to answer these questions we must discuss the various business entities as well as laws that govern many aspects of business interactions with individuals and specifically with other businesses. These laws ar referred to as agency laws.

Barnes, Dwarkin, and Richards (2003) stated Agency law addresses ternary basic but fundamental questions:

1.What duties do a capitulum and an agent owe each other?

2.What is the liability of the promontory and the agent on contracts made by the agent?

3.When is the ruler liable for the torts of the agent?

Answering these questions is critical for clarity in business transactions that occur between two entities. These are the cornerstones on which the business world is built upon. Without these guiding principles many obligations to all the agent or the principal may go unfulfilled. The age of a handshake and a promise are over. The business environment relies heavily on such duties to run productive and profitable operations.

Owning a business, organization or franchise is not as simple as one might assume.



There are many things to consider when opening a business - the first and most important choice to make is what practice of business - or what type of business entity - the company impart take. There are approximately six forms of business entities that are most commonly undertaken and these are: sole proprietorships, particular and habitual partnerships, publicly held or close corporations, limited liability companies (LLCs), limited liability partnerships (LLPs), and franchises.

A sole proprietorship is a business that is have by one person only...

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