StudentShare solutions
Triangle menu

Agency and insurance Law - Case Study Example

Not dowloaded yet

Extract of sample
Agency and insurance Law

Drew and Bev are employed by Kirk as his sales assistant in his business of selling building and decorating supplies and related products hence they are his agent. An agent is a person employed expressly to do any act for another or to represent another in dealing with a third party.The work of an agent is to linking the principal with a third party bringing about a contractual relation between his principal and a third party. (Saleemi, 1992)Eileen runs a large office went to Kirk firm to make a big order of 1000 potted plants. He was served by Drew, one of the sales assistant in Kirk firm. Drew informed her that the price for the potted plant was 20 per plant. Just to be sure about it, Eileen requested to confirm about the price from Kirk, his boss. Kirk told Eileen that he had authority to make such an agreement on his own but he would confirm about this particular order with his boss.Drew went to the back of the office out of Eileen's sight and returned saying he had confirmed the deal with his boss. Drew did not confirm about this order with Kirk since he was on phone but Eileen believed him.Kirk is liable for the contract entered by Drew and he should not escape the contract. Drew as Kirk's sales assistant is presumed that there is creation of agency between them by express agreement. Hence Drew possesses a contractual capacity to make a contract with a third party on behalf of his principal which is binding. Eileen believed that even though Drew had no capacity to make sales agreement for big order, he confirmed about the sale when he visited their premises and Drew confirmed this from Kirk at the back of the shop out of her sight.
This case would also be ostensible authority where an employee who has been placed in a position of responsibility mat be assumed to have such authority as normally matches with the position, irrespective of what is his actual authority. For this case, entered into contract with Drew believing that he had proper authority of his employer. So, the employer is liable for the contract.
A similar case studied is that of:
Watteu v Fenwic, 1893
In this case, a manager of a public house was expressly instructed by
his employer to order all hotel requirements through him. In
breach of these instructions, the manager ordered some cigars and
other goods from the plaintiff. It was held that the owner of the
public house was bound by the manager's act because it matches
his position. (Emanuel, 2004)
Advice to Kirk
Kirk might not be liable for the contract if Drew as an agent acted on the contract by exceeding his authority. If for example there is an agreement during creation of agency that the agents have only authority to make sales agreements not exceeding a certain quantity, then Kirk might not be liable.
Advice to Drew
Drew might be liable for the contract if he exceeded his authority while making that contract. A breach of implied warranty of authority arises when a person exceeds his authority. In this case the principal is not under no liability on the contract and the agent becomes personally liable for the breach of implied warranty of authority to the third party. It is immaterial for this purpose that Drew (agent) believed himself to have such authority.
Case II
Wendy was a manufacturer of table saw and she approached Bev to make an offer to sell table saws for 400 per table saw provided he picked them up from her factory. Bev agreed to Wendy's offer even though he had authority to sell but not to purchase. Ten days after the ...Show more

Summary

Drew and Bev are employed by Kirk as his sales assistant in his business of selling building and decorating supplies,hence they are his agent.An agent is a person employed expressly to do any act for another or to represent another in dealing with a third party…
Author : shyannmayer
Agency and insurance Law essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the case study on your topic
"Agency and insurance Law"
with a personal 20% discount.
Grab the best paper

Related Essays

Employment Law case
If Jill is classified as independent contractor, any dispute between her and Momma Mia will be determined by contract laws, but if she that she is an employee of Mommy Mia, she will be able to contest the termination in accordance to prevailing employment laws.
2 pages (500 words) Case Study
Avaition Law
However, the trial judge reduced the damages to $1,042,500, plus post- judgment interest and costs. The Tenth Circuit reversed and remanded for a new trial. The case came before the Tenth Circuit again after the second trial with Piper raising the issue of whether federal aviation law preempted state common law claims, or more specifically, whether a manufacturer's compliance with federal aviation statutes and regulations should be a complete defense to individual state common law claims.3 The Tenth Circuit affirmed the trial court's decision not to grant summary judgment to Piper based on that defense.4 Concerned manufacturers, pilots, and legislators criticized the award for several reason
12 pages (3000 words) Case Study
Business Law #5
It had joined along with nine other similar corporations, each with two cabs only, to form a bigger combine. Carlton is a stock holder in all the ten corporations. Only the minimum insurance liability required by the law is carried by the cabs. Though seemingly independent, these corporations are operated as a single entity.
2 pages (500 words) Case Study
Law of Insurance
The first issue has to do with a mistake in the value of the contents of the house due to Bhavinda agreeing to store her friend's stamp collection worth 90,000. It is important to note that content insurance is a type of indemnity insurance since one insures the amount which may be lost in case of damage/theft within the home.1 The amount paid out depends on the amount actually damaged.2 This differs from contingency insurance, which is made up of a lump sum payable upon the occurrence of an event, which is usually connected with life-insurance policies.3 Indemnity insurance, as with contingency insurance, requires the policy holder to have an insurable interest in what is subject matter
8 pages (2000 words) Case Study
Leith Agency
Leith Agency, being an advertising firm, has to deal with clients producing various goods and services. A detailed review of the case study clarifies that the agency identifies critical incidents depending upon the product, which has to be promoted and its market share compared to its competitor.
3 pages (750 words) Case Study
Agency and partnership law
The general rule applies where the agent's contract was authorised, either in advance, or after the fact by ratification; the position may be different where the agent has apparent but not actual authority. It would also be reasonable to conclude Andrew's act as the best available option, given his rights, to confirm the order even prior to receiving verbal or written confirmation from ADC.
14 pages (3500 words) Case Study
The Role of Utmost Good Faith in Insurance Law
Insurance law is based upon the law of contract, whereby the contractual duties are primarily upheld by courts as they represent the freedoms between individuals concerning business dealings. In addition, the elements of a valid contract are so tightly defined that to override them would make a mockery of an individual’s right to deal.
12 pages (2500 words) Case Study
Contract Negotiations in Business Law
This denial for coverage was due to a misrepresentation based on a report known as the "woodburning stove Inspection Report." The insurance company claims that there are two faults in the circuit court's judgment. The first error being that the court had sustained the third-party defendants' pleas with regard to the statute of limitations.
2 pages (500 words) Case Study
Agency,innkeepers doctrine,and liquor licensing law
If a principal is disclosed and named, and the agent acts out outside its actual or apparent authority, then only the agent is liable to the third party. Hence, Worf cannot enforce the contract against Picard.(b) No, the answer would still be the same even if the agent had not informed the third party of the name of the principal because the agent acted outside its actual authority and against the instructions of the unnamed principal.
8 pages (2000 words) Case Study
Contract and Agency Business Law
The offer involved the employees getting 5% of the value of the sale or merger. This was a good deal and the employees accepted and stayed on with the company. The consideration of the contract in this case was the fact that each party was contributing something to the deal
1 pages (250 words) Case Study
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation