logo

Business and Corporation Law Assignment - Case Analysis

10 Pages2308 Words38 Views
   

Added on  2021-06-15

Business and Corporation Law Assignment - Case Analysis

   Added on 2021-06-15

ShareRelated Documents
0CORPORATION AND BUSINESS LAWCORPORATION AND BUSINESS LAWName of the Student:Name of the University:Author Note
Business and Corporation Law Assignment - Case Analysis_1
1CORPORATION AND BUSINESS LAWQuestion One:Scenario one:Issue: In the first scenario the issue that exists is whether the contract had been formed between Teenceand Gaby or between Gaby and Sara and whether Gaby can deny the contractual claims ofTerence. Law:In this given scenario the agency law is relevant. An agent can be defined as a person whoderives authority from the principal to act on his behalf and represent him in transactions withthird parties. An agent generally derives authority to act on behalf of the agent by the agreementof agency. Such agreement contains the name of the principal who delegates the authority, thename of the agent who derives the authority and the roles and responsibilities of the agent whiledealing with the third parties. It can be stated that a principal general incurs liability of theactions of the agent as the agent acts on behalf of the principal, however if the agent fails todisclose to the third party that he had been acting as an agent of the principal while transactingbusiness, the third party can claim performance of the contract from either the agent or theprincipal. This had established in the case Yin Kwan v Eastern Insurance Co Ltd [1994] 2 AC199. It can be stated according to the finding of the case that in case of undisclosed principal thethird party will enjoy the doctrine of election. Further in relation to the decision of the caseKeighley, Maxsted & Co. V. Durant [1901] AC 240 (HL) it can be stated that if an agent fails todisclose to the third party that he had been acting within the authority as delegated to him by theprincipal he can be sued by the third party as the principal.
Business and Corporation Law Assignment - Case Analysis_2
2CORPORATION AND BUSINESS LAWApplicationIn relation to the facts of the given scenario, it can be stated that Sara had shown her design ofjewellery to Gaby. However she had failed to mention to Gaby that she worked for Terence.Gaby ordered the jewellery from Sara. Therefore by the application of the doctrine of election incase of undisclosed principle as established in the case of Yin Kwan v Eastern Insurance Co Ltdit can be stated that Gaby can choose to demand the performance from Sara instead of Terence fshe chooses.ConclusionThus to conclude it can be sated that Gaby deny contractual claims of Terence.Scenario 2Issue:In relation to the facts of the second scenario, the issue that can be said to be existing is ifTerence is bound by the action of buying the gold by Peter.Law:The relevant law that is applicable in the given scenario is that of usual authority. The concept ofusual authority had been discussed in the case of Watteu v Fenwick [1893] 1 QB 346. In this theowner of the bar had explicitly mentioned to the hotel manager not to buy cigars. However whenthe hotel manager bought the cigars, it had been held by the court that the principal was liable topay for the cigars as the hotel manager was acting within the scope of usual authority when heordered such cigars on behalf of the owner of the bar. Therefore this case established the rue that
Business and Corporation Law Assignment - Case Analysis_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Business Law: Agency, Usual Authority, and Separate Legal Entity
|11
|2376
|140

Business Law: Agency, Usual Authority, and Separate Legal Entity
|11
|2369
|453

Sample Assignment on Business Law (Doc)
|9
|2584
|135

Business and Commercial Law
|11
|2396
|473

Law of Agency in Relation to Contract
|10
|2281
|458

CSU Busines Law 504 Modules
|12
|2336
|42