The modern treatment of agency has moved away from the artificial conceptualism of the 19th century and has focused on the context of the modern agency: the commercial, social, and political environment in which it operates. However, it is important to remember that agencies are liable for their actions in misfeasance or nonfeasance.
They are liable for misfeasance or non-feasance
Non-feasance is a form of negligence that arises when a person does not act in the proper way. The term derives from the French word ‘faisance,’ which means action, and the prefix ‘non’, which means not. A non-feasance case can arise when a person does not perform the required action, which causes harm to another person or party. Most often, this type of case occurs in the professional realm, where an employee’s inaction results in harm. Medical professionals, emergency personnel, and physical education trainers, for example, are liable for any harm that their actions cause.
As a general rule, misfeasance requires a reasonableness inquiry, while nonfeasance does not. While there are many exceptions to the reasonableness doctrine, there are a few common-law negligence principles that govern non-feasance.
In this context, Mill suggests that non-feasance can result in harm, although he does not elaborate on these reasons. Lord Hoffmann argues against this concept and doesn’t advance any good reason for not causing harm.
If an agency does something that causes harm, the person that authorised the act is liable. This includes putting up a warning sign. This type of act is a misfeasance if the person is injured by the road.
The economic argument for avoiding liability is weak. Adequate evidence shows that the imposition of positive duties would promote efficiency just as much as negative duties. Therefore, there is no valid economic argument against liability. However, this theory may not apply to the case of non-feasance.
They must cooperate with principals
Agents and principals have legal responsibilities when they work together. They are bound by contracts to perform the work as agreed upon, and they must follow the contractual terms. The principal must compensate and reward the agent fairly and must avoid any action that may jeopardize the relationship. Both parties must follow all lawful instructions and provide accurate information to the other party.
The first duty is to obey the principal’s instructions. The agent is under an implied duty of loyalty to the principal. As long as the instructions are clear, the agent is bound by them. If the instructions are unclear, the agent should consult the principal to clarify. The second duty is to notify the principal of important matters.
Another duty is to act in the best interest of the principal. The principal may be the liable party in a transaction if the agent fails to perform the contract. In these situations, the agent must make the best decision possible. In many instances, the principal may request that the agent remove itself from the situation. This is called the principal-agent problem.
The agent’s authority is implied and actual. Actual authority exists when the agent reasonably believes that the principal wants the agent to take an action. The agent’s authority can be expressed or implied, but the principal may limit or revoke the authority given to the agent. It is also necessary to understand the limitations of the agent’s authority.
They must embrace new technologies
To stay competitive, an agency must embrace new technologies and innovate in order to keep up with the times. The good news is that there are many ways to innovate in an agency and stay ahead of the curve. Here are five examples: To attract new business, improve brand awareness, reach new demographics, and improve services.
They must evolve
To survive and thrive in this age, marketing agencies need to evolve in order to stay ahead of the competition. Adapting to a changing market is more important than ever – especially in a time when ad blockers cost publishers nearly $22 billion. The new agency model must be inclusive, diverse, and willing to disrupt and automate.
In the “Digital Age”, marketing agencies must adapt to address a range of challenges, including performance measurement, accountability, and client/agency relationships. Moreover, new challengers are trying to disrupt traditional advertising agencies by embracing integrated, multi-channel digital marketing practices. To stay competitive, agencies must stay ahead of the competition and go digital, too.
