Corporations and Business Law Case Study Assignment

CORPORATIONS AND
BUSINESS LAW
CASE STUDY ASSIGNMENT

Part A

Issues:
Whether the Swimming Co is responsible
for the acts of Martin?
Whether it can be claimed by the company
that they are not liable for Martin’s act as
he acted without instructions?
Whether Martin is liable for any of his
actions to his employer?
Whether Martin has caused the breach of
any law if he has planned to establish his
own business.

Rules:
The law of agency deals with relations that
includes a person known as the agent who
has been authorised to act on behalf of
another known as the principal to make
transactions with an outsider known as the
third party.
An agent acting within the authority
conferred to him by the principal binds the
principal and makes him liable for the act
done by the agent as observed in the
famous Panorama Developments
(Guildford) v Fidelis Furnishing Fabrics Ltd.

Rules (Contd.)
Any illegal or misconduct committed by
the agent will make his principal liable to
the 3rd party who can claim damages
under the law of tort if the agent has
performed such act within the authority
he has been entrusted with as observed in
the case of Deatons Pty Ltd v Flew.
The principal can deny his liability for any
wrongful act committed by the agent
when the agent has acted beyond his
authority or without any authority

Rules (Contd.):
The agent also has a fiduciary duty
towards his principal such that he acts n
good faith to ensure best interest for his
principal and to act in accordance to the
directions of his principal as entrenched in
the case of Caltex Oil (Australia) Pty Ltd v
The Dredge Willemstad.
The agent is prohibited to incur any
personal advantages in course of his
transactions as an agent.
The agent is barred to set up a business in
competition to that of the principal.