Federal agencies, congress creates them under the scope of the legislation. Legislation that creates an agency is called enabling act. Congress gives power to agencies under the delegation doctrine. The business works according to the rules set by these agencies. The power of investigation in case of violation lies with the agencies. They also have the power to secure and hear the violation by those businesses. It sets the standard of business. Agencies created by congress work on behalf of the executive, judicial and legislative. These powers of agencies are sometimes controversial. Over time US government observed that congress delegating powers to the agencies is a necessity. Under commercial law, there are two ways while creating an agency, i.e., by agreement or by power of law. Chapter 8, under the contract law, deals with the creation of an agency. Agency created through agreements does not require to fulfil three essential aspects of contract, i.e., consideration, a written document sometimes. There are instances of gratuitous agencies where the above requirements are not present. A person acts with consent on behalf of the other person. Most of the agency agreements are legally binding even if there was no written document. The document acts as proof, so most of the agency agreements prefer to be written. The agent requires having a written document in case of a third-party contract. The capacity of parties to create agency agreements is another requirement. The focus relies on the principle, therefore, an incompetent agent cannot bind a principle by his actions. The agency established by the operation of law might be either implied or apparent agency. When an agency is created without an agreement but valid in the court’s eyes, it is said to be an implied agency created by operation of law. When a person acts as an agent without a valid agreement, and a principle lets him do that on his behalf, it also comes under an implied agency. In the case of an authorized agent, he works till a specified time frame. The agents remained there till the third party was not informed about his termination.
Powers of Agency
As discussed earlier, an agent was vested with diversified powers. In the case of commercial law, they require to act under certain contractual agreements for the principle, and the power is limited up to the extent mentioned there under such a contract or agreement. In the case of federal agencies, congress grants them power under the statutes. The FTC has the power to regulate all the business that occurs among states and determine their unfair practices. The stock market and corporate security investments get regulated by the security exchange commission (SEC). Agencies have vested with powers to act, which cannot be performed by general legislative bodies.
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