Critical review on the ratification of principal to the third party Essay

Critical review on the ratification of principal to the third party - Essay Example Here we may cite another example of agency contract in respect of employment of suitable candidates. Numbers of companies are hiring the services of HR consultant to assist them in right sizing and locating the valuable human capital to meet the desired objectives of their companies through rigorous selection process. Moreover, in the shipment of goods to their destined port, the role of clearing and forwarding agencies are worth praising in terms of their services. It is not necessary that the whole tasks of the company be assigned to the agency that performs certain jobs on behalf of their clients. Many relationships do not necessarily require involvement of agency services. Hence, contractors and providers of goods and services do not fall within the category of agency relationship. There are number of laws, which an agency has to follow to perform certain tasks at the behest of their customers. In this particular situation, the law of contract plays key role in defining and discharging responsibilities within the framework. In fact it’s a tripartite relationship amongst a) Self b) Principal and the c) third party. In other words it is a special kind of contract under the agency contract. The principal contract which executes between the principal and the third party is implementable on either sides in favour or against and has the same repercussions as the principal has for self. Since there are no privets of contract between the agency and the third party who had signed the agreement, therefore, the agent has the right to step down. Let us see the important ingredients, which are required to establish an agency a) by signing an agreement b) functional in accordance with law c) authority to strike a deal and d) ratification the act of agent who in some areas does not enjoy the authority of principal to do so. The agency has to perform number of tasks strictly in line with the agreement made