Corporations and Business Law Case Study Assignment

CASE STUDY ASSIGNMENT
CORPORATIONS AND BUSINESS
LAW

Part A

Issues:
Whether the Swimmingpool Co can be said to
be responsible for the acts done by Martin,
Whether the said company will be able to
claim that they are not liable for the acts of
Martin,
Whether Martin will be held liable to his
employer for any of the acts done by him and
on what basis,
Whether Martin has done breach of any law
when he planned to set up a similar type of
business.

Relevant Rule of Laws:
Agency law is a type of commercial law where a
person called an agent is being authorised to act
or perform according to the directions given by
another person or on behalf of such person
called the principal in order to make dealings
with outsiders called the third parties. It is
observed in the decision given by Pirie Street
Stage 1 P/L v Trotman & Anor And Stewart
& Ors.
The agent is authorised by the principal either in
an express way or in an implied manner to act
under his control but on his behalf as observed
in Hely Hutchinson v Brayhead Ltd .

Relevant Rule of Laws
(Contd.)
When the agent acts according to the
directions of the principal within the authority
conferred to him, his acts will be binding on
the principal who can be held responsible for
such as observed in the case of Lyford v
Media Portfolio Ltd.
 If the principal has allowed the agent
expressly to act beyond his authority, then
later on he cannot deny his liability for any
act done by such agent as observed in
Panorama Developments (Guildford) v
Fidelis Furnishing Fabrics Ltd.

Relevant Rule of Laws (Contd.):
Any type of illegal act or misconduct by the
agent will bind the principal provided such act is
done within the authority entrusted to the agent
and during the course of agency between them.
The principal has the right to deny his
responsibility for any wrongful act when the
agent has gone beyond the responsibility given
to him or has acted without any authority as
given in the case of Shaddock and Associates
Pty Ltd v Parramatta City Council (No 1).
An agent has a duty to act in good faith to incur
the best interest for the principal as given in
Caltex Oil (Australia) Pty Ltd v The Dredge
Willemstad.