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Business Law for People in Business

   

Added on  2021-05-30

10 Pages2258 Words65 Views
Running Head: BUSINESS LAWBusiness LawName of the Student:Name of the University:Author Note

1BUSINESS LAWAnswer 1Issue 1 Has Jevan been provided any authority under the meaning of agency law by Jimbo for getting thehighly collectible guitar repaired. Issue 2If authority has been provided is Jivan imposed which any duties to his principle Issue 3If duties are imposed, are there any liabilities which Jevan is subjected to in relation to the duties Issue 4Whether the warranty of authority has been breached by JevanRule 1Under the provisions of agency law there are two types of authorities provided actual authorityand ostensible authority. Actual authority takes place when the principal (authority provider) inan express of implied manner gives authority to the agent (authority receiver). The otherauthority is apparent authority which is created by law. Implied authority which is best suited to address the first issue is a form of authority which isactually provided to the agent by the principal in an implied way. Implied authority is present ornot is also determined by the courts in certain circumstances. In the case of Watteau v Fenwick

2BUSINESS LAW[1893] 1 QB 346 the court analyzed the rules of an implied authority. The authority which isestablished for the purpose of making sure that the agent is able to carry out the expressedauthority appropriately is the implied authority. The authority is imposed on the agent when theagent carries out the action in a way which is within the general scope of express authority. Theprincipals of the case made it clear that the third party cannot be restricted from making a claimfrom the principal where there has been an express limitation imposed on the agent by theprincipal in relation to their express authority. The facts of the case will help better understand implied authority. In this case the principalwhich has the owner of a pub had appointed a person who had the job position of a “pubmanager”. The manager was provided an express authority in the role of the pub manager to getinto transactions which were conducted by a manger in the normal course of business. Theprincipal had prohibited the manager from purchasing cigar. However without taking intoconsideration the restriction the manager purchased the cigar. In this case the court stated that theactions of the manager was in his general expressed authority course. The third party who did notknown about the limitation imposed has the right to make a claim from the principal for the costof the cigar. The manager had implied authority to purchase the cigar. Rule 2The agent is in a relationship of fidelity and trust with the principal. This is known as a fiduciaryrelationship. Where there is a fiduciary relationship between the parties there are certain dutiesimposed by law. One of such duties include working with due skill, not having conflict ofinterest, basing operation in the best interest of the principal and acting with the powers providedby the principal.

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