Answers:

1-Explain the 3 kinds of agents.

Universal agent

 a universal agent is an agent who has the authority to act and delegate in place of their client. In most cases, the agents are given the clients power, which gives them a worthwhile authority on behalf of a client in the lawful proceedings and at times they may also be ordered to make financial transaction representing the client.

General agent

 These are agents employed or contracted to make specific transactions or proceedings on behalf of their client over a certain period of time. General agents have the authority to represent the client although in a limited arena.

Special agent

These are agents that are given authority over a single or a series of transactions in a limited period of time. Special agents are the most used by most people from time to time. For example, travel agent, security agent.

 

2-Explain the purpose of an agency agreement: 

 The purpose of agency agreement is to provide a good explanation of the span of the agency arrangement such as the tome that the agent should do the acts, the authority of the acts that the agent has on behalf of other of the client and the place that the agent can perform the acts.

 

3-List the 3 parties to an agency relationship: 

 The Parties include:

1. The Principal/Client.
2. The agent.
3. The third party.

Explain the difference between a mortgagor and mortgagee 

 A mortgagor is a borrower while the mortgagee is the person or the entity that lends money to the mortgagor for purchasing real estate.

 

Explain what a mortgage is. 

 A mortgage is a type of loan that is used to purchase real estate or rather buy a home. A mortgage is a secured loan meaning that when the borrower is taking the loan they have to promise the lender, that in case you stop paying the loan the lender can take possession of the home, and therefore it's until you complete the mortgage that you own a home. Besides, itis paid with interest over a period of some years.

 

Explain what a lien is. 

 A lien is the legal right of the creditor or a legal judgement or tax authority to claim the assets that are generally used as collateral to pay a loan. The lien is subject to when the commitment made is not fulfilled then it allows the creditor to seize the asset.

 

Explain the major differences between an employee and an independent contractor. 

The company retains income tax, security and medicare for employees from their wages while for the independent contractor, there is no retaining of taxes.

Furthermore, an employee is covered by some internal and state employment and labour laws while an independent contractor is not covered by these laws.

Besides, an employee has to complete an application given by the Human resource, approved and after approval receives a job offer. After the job offer then they must provide additional information about themselves such as the marital status and citizenship while an independent contractor just interacts with the department that needs the specific service or task that they are offering, completes a proposal and then gets into a contract.

in addition, an employee is paid either an hourly rate or a salary while a contractor may be paid a total amount either daily, hourly, weekly or when they complete the job.

References

Beatty, J. F., Samuelson, S. S., & Abril, P. (2018). Business law and the legal environment. Cengage Learning.

Wilson, M. (2019). Auctions: negotiating agency agreements. In Art Law and the Business of Art. Edward Elgar Publishing.

Kuhn, K. M., & Maleki, A. (2017). Micro-entrepreneurs, dependent contractors, and instaserfs: Understanding online labor platform workforces. Academy of Management Perspectives, 31(3), 183-200.