LAW 18B Chapter Notes - Chapter Ch. 32 Agency Formation & Duties: Independent Contractor, The Employer, W. M. Keck Observatory
7 Feb 2019
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In a principal-agent relationship, the parties have agreed that the agent will act on behalf. & instead of the principal in negotiating & transacting business with third parties. Fiduciary: a person having a duty created by his/her undertaking to act primarily for another"s benefit in matters connected with the undertaking. Fiduciary relationship: the relationship involves trust & confidence. Agency relationships commonly exist between employers & employees, but may also exist between employers & independent contractors who are hired. Employees who deal with third parties generally are deemed to be agents of their employers. Employment laws (state & federal) only apply to the employer-employee relationship; statutes governing social security, withholding taxes, workers" compensation, unemployment discrimination, workplace safety, & employment discrimination. These laws do not apply to independent contractors. Independent contractors are not employees because those who hire them have no control over the details of their work performance. He/she may or may not be an agent.
