Business Agent Agreements
Compensation provisions have been very dynamic in recent years. More and more companies are limiting the compensation they will award to an agent. The Committee recommends and will continue to recommend that the company compensate the agent for any liability arising from an act or omission of the business, except to the extent that the agent caused such an error. Although the agency contract is not required in writing, contracts made by agents with third parties often have to be written. For example, Section 2-201 of the Single Code of Commerce expressly stipulates that contracts for the sale of goods for the price of five hundred dollars or more are signed in writing and “by the party against whom the execution is requested or by its agent.” If the representative represents a company without arbitration in its agency agreement, the company should ask the company to notify in writing its dispute resolution procedures. The “ownership of expiry operations” provision is often overlooked because agents believe they have the activity they do with businesses. The agent`s ownership at its expiry hours is the essence of the independent agency system. A provision duly built on “downtime ownership” is essential, not only to preserve the agent`s independence and capital in his business, but also to define the right boundaries between his clients and the company. the company`s actions or omissions, unless the agent is responsible for such errors; Suppose Arthur is Paul`s agent, who works until October 31.
On November 1, Arthur bought materials from Lumber Yard – as he has done since the spring – and loaded them onto Paul`s account. Lumber Yard, unaware that Arthur`s employment ended the day before, Paul calculates. Does Paul have to pay? Yes, because the resignation of Lumber Yard has not been communicated. It seemed that Arthur was a licensed agent. This question is asked in Chapter 26 “Responsibility of the adjudicator and agent; Cessation of the agency.” This distinction between independent agents and contractors has important legal consequences for taxation, worker compensation and liability insurance. For example, employers are required to refuse tax on their employees` wages. However, the payment to an independent contractor, such as the plumber. B, does not require such restraint. It is not always easy to decide who is an independent contractor; there is not a single factor or a mechanical answer.
In Robinson v. New York Commodities Corp., an aggrieved seller claimed compensation for the workers and claimed to be an employee of the New York Commodities Corporation. Robinson v. New York Commodities Corp., 396 N.Y.S.2d 725, App. Div. (1977). But the National Employment Commission ruled against him, citing a number of factors. The complainant was selling canned meat and was driving in his car from his home. The company did not set hours for him, had no control over his movements, and had not reimbursed him for mileage or other expenses, or withholding tax on his direct commissions.