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Section 19 代理事宜Agency I. 要点概述Main Points 1. What is an agent? 1. What is an agent? An agent is an individual or firm authorized to act on behalf of another, called the principal, such as by executing a transaction or selling and servicing. Unlike a dealer, the agent is a representative who arranges business for other people, but does not assume any financial risk in the transaction. There usually exists the agency describing an agreement between two parties where one will be a representative of another, namely, the principal and the agent. In other words, the principal is a person who wants to achieve something by hiring an agent to help achieve it. The principal-agent relationship means, that both parties agree, that agent will represent the principal in doing business. The agency relationship is based on agreement between parties. Most agency relationships in business are formed to accomplish certain task. Once the goal is achieved, the agency relationship is terminated. Since the agency relationship is consensual, it can be terminated, if either party no longer wants to continue the relationship. 2. What are the differences between a sole agent and a general agent? In general, there are two types of agents – sole agent and general agent. A sole agent is a contract agent who represents a single company while a general agent is an independent agent who represents more than one company. When we say sole agent, it indicates that the client has appointed only one agent to act on their behalf in the selling of the property. Appointment of a sole agent does not restrict the client from selling the property privately themselves, providing there is no other agent involved. And if we say general agent, we mean that an independent agent represents at least two companies and serves clients by searching the market for the most advantageous price. The agent’s commission is a percentage of the sales value paid and includes a fee for servicing the principal. 3. How can we f
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