When are Agents Liable for Contracts they Sign in Georgia? An agent acting within the scope of her authority is not liable to third parties on obligations entered into on behalf of the principal. Even if the agent exceeds her express authority, her implied authority...
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Control within Business Entity
What is control over a business entity? This questions concerns who has control over operations or authority to act on behalf of the business. Each business entity type has a default control structure and level of authority vested in individuals in those roles. In...
Maintenance Requirements for a Business Entity
What are the maintenance requirements for a business entity? Maintenance of a business entity is summarized as the administrative steps associated with starting and carrying on business as a given entity form. It entails the process of filing documents, holding...
Self-Employment and Payroll Taxes
Self-Employment and Payroll Taxes Employers and employees who receive any form of compensation as part of their employment are generally subject to payroll taxes. Payroll taxes were authorized under the Federal Insurance Contribution Act (FICA) and are made up of...
What are Requirements for an S Corporation?
What are the requirements to qualify as an S corporation? To qualify for S-Corporation status, the business must be a corporation and meet the following requirements: Geography - Organized in the United States. Citizenship - All shareholders must be US Citizens or...
Employer Liable for Torts of Employee
When is Employer Liable for Torts of Emplooyee in Georgia? An individual is always liable for her own conduct. Whenever an individual is held liable for the actions of another, this is known as vicarious liability. In the context of agency, the agent is acting...
Employee vs Independent Contractor – Agency Relationship
Is an Employee an Agent? Employee - An employer hires an employee to work on behalf of the employer as part of or in support of the businesss core functions. The employee generally works exclusively for the business in the functions for which she is hired. The...
Employer Liable for Employee Contracts
When is Employer Liable for Contracts of Employee? A principal is generally bound to third parties pursuant to the contracts entered into by the agent on behalf of the principal. This means that the principal is responsible for any obligations incurred by the agent...
What is a Frolic and Detour?
What is a Frolic and Detour in Georgia? A frolic and detour is a general defense to vicarious tort liability. It states that the principal should not be liable for the tortious acts of the agent when the agent is acting outside the scope of her employment and for the...
Duties of Agent to a Principal
What are the Duties of an Agent in Georgia? Agents generally have the following duties to the principal: Loyalty - An agent has the duty of loyalty to act for the principals advantage and not to act to benefit herself at the principals expense. An agent is expected to...