Legal Issues in Business Law

Running head: BUSINESS LAW 1
Business Law
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BUSINESS LAW 2
Legal Issues
The legal issues in this case is the determination of a sale in law of agency and its
legality. The agency law is an area in commercial law that deals with quasi-contractual,
contractual and non-contractual fiduciary relationships with an agent contracted to create
legal relationship with a third party on behalf of the owner (Akter, et al,2016).
Case
Patrick in this case is the agent and Kerry is the owner of the house. Patrick an agent
working for Kerry and is selling the house at $250,000 for Paul and Rick a young couple.
Kerry wanted $ to sell the house between $250,000 and $300,000. The problem is the
contractual agreement signed to sell the house to the couple without the consent of Kerry
which offended her.
Compare strategies used to manage risks in an organizations business activities
There are different strategies that are used to manage risks in an organization. Risk is the
probability of a loss or an event occurring and its consequences. Risk focuses on what could
probably go wrong. In this case, Kerry wanted more in sale of the house. Since she did not
know the demographics of the real estate commercial market in Red Deer, she had to engage
a real estate agent in Patrick (Mitnick, 2015). This is a strategy in mitigating risks by
delegating duties to an agent. An agent in property law functions include;
1. Principal-Agent relationship where the agent has the legal powers and mandate to act
on behalf of the principal in sale and purchase of property
2. The agent must act on the best interest of the principal and cannot simply use their
positions to make money out of the transaction or the business. This is called the
fiduciary duties.