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agency
Corporate & Other Laws
Is there a agency relationship between 1) employee and employer 2) servant and master since any act done by employee or servant also binds the employer and master respectively so will it create agency as in the case of principal and agent?
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Best Answer
Employer-employee relationship: An employer hires an employee to perform some form of physical service. An employee is not an agent unless the principal authorizes him or her to enter into contracts on the principalâ??s behalf. Principal-agent relationship: An employer hires an employee and authorizes the employee to enter into contracts on the employer's behalf. Principal-independent contractor relationship: A principal employs a person who is not an employee of the principal. The independent contractor has authority to enter into only those contracts authorized by the principal.
A servant is anyone who works for another individual, the master, with or without pay. The master and servant relationship only arises when the tasks are performed by the servant under the direction and control of the master and are subject to the master's knowledge and consent.
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