Sunday, April 26, 2009

TriColor contracted to sell Esday, Inc. 500 cotton blankets.Is there an agency relationship between both?

No, this does not constitute an agency relationship, it is a simple contractual relationship.


Agency means one party will act on behalf of another - a seller, a buyer, an individual - subject to the terms of the agency agreement. Agents usually work off of a percentage of the deal in question.


Agents have a fiduciary duty to those they represent, simple sales contracts have no such obligation.

TriColor contracted to sell Esday, Inc. 500 cotton blankets.Is there an agency relationship between both?
No, agency relationships are when one person or group works for the other.





Contracting for someone to make a product for you does not make you an agent for them absent other language.





Otherwise that would mean BestBuy would have an agency relationship with every manufacturer for a product in the store and that would be silly.





Now if you contracted to have a company make the blankets for you and place them in apartments for you and keep them clean and maintianed..then you would be closer to an agency relationship.


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