Analysis On The Introduction Of Principal’s Liability Attribution In Apparent Agency Constitutive System

In modern economic society, agency is becoming a very convenient and efficientbusiness method. Apparent agency constitutes a major part of the agency system byplaying an important role in protecting a bona fide counterpart and maintainingtrade safety. However the arguments about constitutive requirements of apparentagency have never stopped. Author believes when a principal has absolutely noliability attribution to the creation of appearance of agency, the principal should nottake any adverse consequence, that is liability attribution of the principal should betaken into consideration scope of the constitutive requirements of apparent agency.Apart from introduction and conclusion, this paper includes four sections:Part one, started with a history review of apparent agency, and discussed thecurrent status of apparent agency. Regarding the constitutive requirements, itincludes general and special constitutive ones. Between those two aspects, specialconstitutive requirement is the focus of this paper. Two theories exist: singleimportant item theory and dual important item theory. The largest difference iswhether should take principal’s faults into account on the constitutive requirementsof apparent agency.Part two, the research was carried out through comparing previous apparentagency studies. By introducing research results of theoretical studies from France andGermany, and comparing those to relevant domestic researches, the author canprovide suggestion to optimize legalization of national apparent agency system.Part three, analyzed the necessary of introducing principal’s liability attributionto the constitutive requirements of apparent agency, which is not only the inherentrequirements of civil law’s fundamental spirit, that is equal principle, but also toconform with the trend of power changes between the principal and the agent undercurrent society. Part four discussed the possibility of introducing the principal’s liabilityattribution to the constitutive requirements of apparent agency, and focused ondiscussion of special identification method of principal’s liability attribution, which isstarting from objective results, not only judging from subjective faults. At the sametime, author discussed the distribution of burden of proof for apparent agency, andavoided to aggravate the counterpart’s burden of proof during legal practice.