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Case Study example - Agency and insurance Law
Pages 5 (1255 words)
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…
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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. ...
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