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Sample Assignment on Business Law (Doc)

   

Added on  2021-06-18

9 Pages2584 Words135 Views
Running head: BUSINESS LAWBusiness lawName of the StudentName of the UniversityAuthor Note

BUSINESS LAW1Answer 1Issue:The principal issue that is identified in this situation is that whether the Terence is eligible toclaim the value of the contract entered by Sara from Gaby. .Rule:In the given situation the agency law is applicable and relevant. The definition of agency isexplained as the agreement through that the principal gives the power to deal with the otherparties that is also the third party and represents the principal who is in contract with the otherthird party to an agent. There are parties that are involved in the agency agreement is theauthority that is conferred by the principal. Secondly in order to perform on the place of theprincipal, the agent obtains the authority and lastly, Agent is dealt by the third party.In the agency law, two kinds of contracts are there. One is a contract that is made between theagent and the principal, under that the agent is granted the power by the principal and the secondis a contract that is made between the agent who acts on behalf of the principal and the thirdparty.It has been explained that whether a principal is assured by the agent’s actions is dependent orwhether the power of the agent has been delegated by the principal.However, in relation to the doctrine of an undisclosed principal, it is illustrated that the thirdparty has the authority to select from whom he can demand the performance. In case named YinKwan v, Eastern Insurance Co Ltd [1994] 2 AC 199 the doctrine of election has beenestablished. It has been stated in certain circumstances that when this third party does not haveinformation of the agent that he was performing on the behalf of the organization, he has theauthority to choose the demand for performance (De Baere & Nowak, 2016). On applying theabove-mentioned doctrine, a contract has been made between the agent and the third partyrelying on the fact that agent was performing on his own believing the information that agent hadsome skill to perform.

BUSINESS LAW2Application:The facts that have been given in the above-mentioned case study is that Terrance has appointedSara as a jewelry designer. This means through the fact that Sara has been provided with thepower to perform on the behalf of Terrance. Gaby requested Sara to design a piece of jewelrythat is a brooch that was worth a thousand dollar. Therefore, in this case of undisclosedprincipals, by applying the doctrine of election as it was given the case of Ireland v Livingstone(1872) LR 5 HL 395, it has been explained that the performance of contract can be demanded byGaby from Sara because she did not carry any knowledge that Sara was performing as Terrance'sagent and Sara forgot to tell Gaby that she is the agent of Terrance.Conclusion:In the conclusion, it has been explained that Gaby has the authority to choose demand ofperformance either from Terrance or from Sara. However, Gaby had the authority to impose theagreement against Sara to demand performance from her.Issue:The issue recognized in the situation is whether Terrance is liable to pay the gold price that Peterordered.Rule:In the situation that has been provided here that involves Peter, Mary and Terrance apply thePrinciple of Usual Authority. According to the case Hely-Hutchinson v Brayhead Ltd [1968] 1QB 549 the usual authority seemed to be synonymous with the authority that is implied. It hasbeen explained that the implied authority is that authority that is considered by courts to be given

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