Agent Responsibility and Liability
When we appoint a member of our family, a friend, an acquaintance or anybody that we know as an agent, and we must be careful as to how much power they have over our own lives and decisions. Legal processes would factor in what is authority, for example that which is express and implied as well as estoppel and ratification. When entering in conversations about contracts we must keep in mind that the Universal Uniform Code (UCC) states they must be in writing and there are some other causes related to the mailing rule and FOB shipping or delivery point.
Let's look at an example, a manager gives the authority to an employee to contact customers and collect payments due. When the employee calls the customers, they are acting as an agent of the manager and the employer and in fact, they are representing the company itself. However, the owner of this company or manager can avoid misuse of authority by providing feedback and declining unwanted actions due to the agent's behavior.
CPAs are agents of the public and the customers that they attain should understand the term: contract. Contracts can be verbal or written and while written contracts carry more weight if they are not signed under duress or with the purpose of unjust enrichment, verbal agreements can also be upheld in court.
Legal representatives of the public and to private parties have a duty to do their due diligence and to present cases in tax court that would probably be upheld by the same court as opposed to a case that is only possible. In accounting terms, this means that clients must feel comfortable with the decisions that the CPA is taking on their behalf and as their agent.
In today's business world, we see many agents acting in a manner that is not ethical or appropriate and their principals must adhere to their rights and make sure that the agent is providing the best representation and best outcome for their case and service. Agents are important for the public because in many instances, courts, for example, will not hear an individual case from someone who is not familiar or knowledgeable of the legal, accounting and business lingo and process.
Business is wonderful when everything works according to a formula that allows us to provide a service with measure, caution, dedication and accuracy. As an agent of my clients, I would like to believe that I am offering a service and that my clients benefit from my work and skillset which is highlighted in various places such as my website, our social media pages and in my interactions with those who seek results in their livelihood.