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''For the wonderful world of {{tag|MiFID}} categorisation, and for a convoluted answer to the question “who’s client”? see [[Client - COBS Provision]]'' | ''For the wonderful world of {{tag|MiFID}} categorisation, and for a convoluted answer to the question “who’s client”? see [[Client - COBS Provision]]'' | ||
A source of far more angst than you would expect amongst the professional classes. An | A source of far more angst than you would expect amongst the professional classes. An agent is one fellow who represents ''another'' fellow. | ||
===Don’t shoot the messenger=== | ===Don’t shoot the messenger=== | ||
When it comes to entering a {{tag|contract}}, an | When it comes to entering a {{tag|contract}}, an agent enters legal relations on behalf of {{sex|his}} {{tag|principal}} and, in general terms, tries not to take on any personal responsibility {{sex|himself}}. The contract remains between the principal and the third party. | ||
But you soon encounter a thicket of confusion from which you may never emerge and which you will almost certainly regret ever entering. What if the agent doesn't tell the third party who the [[principal]] is? What if the agent doesn't even let on that she’s an agent? | But you soon encounter a thicket of confusion from which you may never emerge and which you will almost certainly regret ever entering. What if the agent doesn't tell the third party who the [[principal]] is? What if the agent doesn't even let on that she’s an agent? | ||
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In this way it resembles playing {{tag|cricket}} with a [[runner]]. Anyone who has ever done that will know the boundless possibilities for confusion and acrimony it presents. | In this way it resembles playing {{tag|cricket}} with a [[runner]]. Anyone who has ever done that will know the boundless possibilities for confusion and acrimony it presents. | ||
===At least ''two''=== | |||
From time to time resourceful structurers might try to overcome an accounting problem, or a booking issue between two desks, by interposing an agency arrangement in the middle of a transaction which, otherwise, has the same entity at either end of it. Won’t work. It won’t work even if the agent is a third party — legally, it just vanishes — and it ''certainly'' won’t work if the agent is the same entity as the principal. ''[[Nemo agens in causa sua]]'', as the [[JC]] likes to say. | |||
===[[Capacity and authority]]=== | ===[[Capacity and authority]]=== | ||
An agent must, of course, be duly [[capacity and authority|authorised]] by the [[principal]], but how will the [[third party]] know this, without the [[principal]] being there to confirm it? You will hear much talk of [[ostensible authority]]. | An agent must, of course, be duly [[capacity and authority|authorised]] by the [[principal]], but how will the [[third party]] know this, without the [[principal]] being there to confirm it? You will hear much talk of [[ostensible authority]]. | ||
An | An agent has a special relationship with a {{tag|principal}} | ||
===[[Broker dealer]]s=== | ===[[Broker dealer]]s=== | ||