Case Study Entering Into The Agency Law

RuleThe common law which rules over the relationship which is present between an agent anda principal is the agency law. As per this law, the principal is accountable and has theresponsibility towards the third party for work which is done by the agent.

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This is due to the factthat the agent is the one who represents the principal when they communicate with the third party Benett, So, a deal which is made with the agent is considered as one made by the thirdpart with principal. Under the actual authority given to the agent,the agent is given either the express authority or the implied authority. In the express authority,the agent is told expressly what has to be done and what their authority is.

In the impliedauthority, the authority is given in an implied manner, which is usually incidental to the expressauthority which has been granted to the agent Cohen, The other form of authority which is given to the agents, and probably which attracts a lotof controversy is the ostensible authority. Under the ostensible authority, the conduct of theprincipal is such that the third party forms a notion that the agent has been given the particularauthority to go forward with the task at hand. In this case,Watteau was the supplier of the cigars to a beer house and this place was operated by Humble.

Watteausupplied the cigars to Humble and he was not aware of the involvement of Fenwick. Fenwickhad never given the authority to Humble to act on his behalf. When the plaintiff was not paid theoutstanding amount of 25 pounds, he brought a legal action against the defendant.

The courtgave the decision in this case in favour of the plaintiff and stated that Humble had the generalauthority to act on behalf of the defendant due to the display of name on board and on thelicense. Hence, the plaintiff was compensated home visit his outstanding payment pursuant to an orderof the court by the defendant H2O, The director of the company aroundwhom the case was cantered had never been appointed at the post of managing director of thecompany but he always portrayed that he was indeed the managing director of the company. Furthermore, the directors of the company also held out the particular director as Case Study Entering Into The Agency Law themanaging director of the company and nothing was done on part of the directors of the companyto undo this portrayal.

This knowledge of the directors led to the court holding the companyaccountable for paying the unpaid debts in terms of the architect fee and so, the plaintiff was paidthe outstanding sum Baidu, This case presented with it four different conditions which are required to be present forundertaking the acts by the agents based on apparent authority. Out of these four, only three areapplicable on more info Australian companies. Based on this condition, the representation has to be made through words or through theconduct of the principal, in front of a third party, in which the agent undertakes the Case Study Entering Into The Agency Law onbehalf of the principal and where it is clearly shown that the agent had the requisite authority forentering into the contract in question or the transaction which was undertaken.]

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Case Study Entering Into The Agency Law.