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Report on Relationship between Agent and Principles

   

Added on  2020-06-04

11 Pages3196 Words47 Views
LEGAL STUDIES

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1QUESTION 1...................................................................................................................................1A..................................................................................................................................................1B..................................................................................................................................................2C..................................................................................................................................................3QUESTION 2...................................................................................................................................4CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................7

INTRODUCTIONSeveral types of rules and policies are mentioned under provision of laws which areapplicable on different situations. Individuals and companies are responsible to fulfil their legalobligations which are imposed on them. Present report includes regulations which are related torelationship in between the agent and principles (Lan and Heracleous, 2010). Minor is not able toframe legal agreement with major if both parties can do so then entire legal agreement shall beconsidered as null and void. It is because; minors are not able to come in contractual relationshipwith other person but in case they do so then it must be considered as a voidable agreement.QUESTION 1 As per the given scenario, there are two parties who come in legal contract in order tofulfil consideration of each other. Vera and Siddo are two parties who come in contractualrelationship with each other. In such situation, principal and agents’ relationship has been createdamong them. Siddo acts as an agent of Vera in order to sell this painting named Dawn (Shapiro,Fisher and Wagner, 2012). Both are bound to fulfil their obligation which are imposed on them.Agents are bound to follow instructions which are provided by their principals. A.According to the given scenario, Vera is the famous painter of landscape scenes. Herlatest painting called as Dawn and she wishes to sell the same in order to earn better profit (Whatis the law of “agency”?, 2014). She wants to sell same painting for 40,000 dollars. For thispurpose, Vera told Siddo to sell that on same price to the person who was seeking for the bestpainting. For a quick sale, she is ready to accept less than 40,000 dollars. But also she clears himthat if he sells the same less than 32,000 dollars then her written consent is necessary to be taken.However, Siddo was not able to sell her painting below the last amount without her writtenapproval and sold the same to Queenie for 20,000 dollars (Hyman and Kovacic, 2012). Due tothis reason, Vera is able to file case against Siddo in order to recover the amount and complywith rules as well.According to section 182 of Contract Act 1872, agent is the person who is responsible torepresent another person known as principal. Their effective relationship is mentioned underagency law. 1

Agency is the legal term which is created by two members known as agent andprincipals. They have to follow rules and regulations which are imposed on them. Both partiesare coming in contractual relationship with each other in order to fulfil their legal obligations.Agents are the persons who act on the behalf of their principals. They both frame legal contractwith each other and sign the legal document. They have to follow terms and conditions which arementioned under written document. Thus, as per the given case, Vera acts as principal and Siddoas her agent who wants to sell painting on the behalf of her (Ye and et.al, 2011). Thus, shealready told her that if he sells painting below the limit then he has to take written approval ofher. But, Siddo sold the same for 20,000 dollars without her approval. Due to this reason, shewas having right to file case against him for the purpose of recovering remaining amount. So,Siddo failed according to terms and conditions which are framed by both the parties throughmutual consent.Case: Watteau v Fenwick, in this case Will J has been held that principal are clearly liable forany act performed by their agent. As they are responsible to pay amount amount of compensationif any wrongful act con duct by agent.B.As per the given case, Siddo is the person who act as an agent of Vera. Also he is boundto follow directions which are provided by his principal. Both parties have to fulfil their legalobligations which are imposed on them as per rule of law. They must understand their ownresponsibilities and duties in order to attain their target in stipulated time period. Law providerights to them for the purpose of protect their interest and maintain their performance as well. As an agent he is not able to earn secret profit through her painting. In which hepurchased painting by himself on less price and sold the same to another person on high price inorder to earn secret profit (Segrestin and Hatchuel, 2011). But according to rule of law penaltyfor further activity has not been mentioned. So that, Vera is well known about such activity butnot able to file suit against him.In that case, Siddo purchase painting for 32,000 dollars and sold to his friend Elly for38,000 dollars. Through such function he was able to earn secret profit which is against the termsand condition of their legal relationship. Both parties need to use their collective efforts in ordermaintain their relationship in effective manner. In which he earned secrete profit of 6000 dollars2

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