true agent
Defined in 1 dictionary — Case Law
Definitions from Case Law
From 336 U.S. 422 - National Carbide Corporation v. Commissioner of Internal Revenue · 1949Most cited · 931 citing opinions
Whether the corporation operates in the name and for the account of the principal, binds the principal, by its actions, transmits money received to the principal, and whether receipt of income is attributable to the services of employees of the principal and to assets belonging to the principal are some of the relevant considerations in determining whether a true agency exists. If the corporation is a true agent, its relations with its principal must not be dependent upon the fact that it is owned by the principal, if such is the case. Its business purpose must be the carrying on of the normal duties of an agent.