Partnership Agreement and Liability
Added on 2020-02-12
8 Pages2801 Words57 Views
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Law 504
Table of ContentsQUESTION 1...................................................................................................................................1QUESTION 2...................................................................................................................................2REFERENCES................................................................................................................................6
QUESTION 1Issues: Tina has appointed Brad as a checkout operator in her garage but due to some medicalissues, she has to take leave from work and meanwhile appointed an individual named Brad toact on her behalf where he was responsible to order petrol (Barker, 2006). Brad started orderingfuel from Caltex every fortnight. When Tina returned from her illness, she instructed Brad thatfrom now onwards, he should not order petrol from here and these matters will be conducted asbefore she took leaves for not being well. However, Brad ignores the instructions and continuedordering fuel from the same place. As an agent, it was Brad's duty to follow Tina's instruction.When Tina gets to knew this situation, she called Caltex and told them that there was no suchcontract between them and Brad has breached the contract of agent and principal. In the presentcase, it has been assessed that the main issue that raised over here was in relation to identifyeffective solutions for Tina with proper instructions. These are required to be given to her as away of overcoming the issues in relation to the placed order that violated the agreed clauses(Drobac and Page, 2006). Another issue raised over here was in regard to the violated norms of anewly appointed salesman named Paul where he purchased a vehicle from Tina with falsifiedreasons at low cost and sold to another person at high price. Therefore, Paul is liable for hisaction as he has breached the contract and thus, Tina could sue him by together asking him forpenalty (Clarey, 2007). In the present case, issue has been faced within Tina and Paul as Tinaappoints Brad and identifies that during her work off, Brad perpetually ordered fuel from Caltexevery fortnight. However, Tina returns from her illness and told Brad not to order petrol fromCaltex any more as now she is well. The issue arise because Brad denies following Tina'sinstructions and carry out contract with oil companies and hence it created issue for thecompany. Later, Tina called Caltex and denies the contract between her and Caltex stating thatBrad was an acting party when the instruction were placed of petrol order. Law: Contract Act, 1872 governs the rights and obligations of both the principal and the agent.Agent is a person who is appointed by the principal to act or represent on behalf of him. Butevery person cannot be treated as agent unless and until he works for the principal. In case wehave to check whether person is an agent or not we can simply check by whether he acts forhimself or for behalf of principal (Glennon, 2006). In case if the person is personally liable for1
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