Agency and insurance Law Case Study Example | Topics and Well Written Essays - 1250 words

Agency and amends Law - Case Study Example draw and Bev are employed by Kirk as his sales help in his business of selling building and decorating supplies and related products hence they are his agent. An agent is a person employed expressly to do any act for some other or to represent another in minting with a third company.The work of an agent is to linking the principal with a third party bringing near a contr essential relation between his principal and a third party. (Saleemi, 1992)Eileen runs a large office went to Kirk firm to make a big order of 1000 potted localizes. He was served by Drew, one of the sales assistant in Kirk firm. Drew informed her that the price for the potted plant was 20 per plant. Just to be sure ab off it, Eileen requested to confirm about the price from Kirk, his boss. Kirk told Eileen that he had authority to make such an organisation on his own but he would confirm about this particular order with his boss.Drew went to the back of the office o ut of Eileens sight and returned saying he had sustain the deal with his boss. Drew did not confirm about this order with Kirk since he was on phone but Eileen believed him.Kirk is unresistant for the hack entered by Drew and he should not escape the narrow. Drew as Kirks sales assistant is presumed that there is creation of agency between them by express agreement. Hence Drew possesses a contractual capacity to make a contract with a third party on behalf of his principal which is binding. Eileen believed that chargeing though Drew had no capacity to make sales agreement for big order, he confirmed about the sale when he visited their premises and Drew confirmed this from Kirk at the back of the shop out of her sight. This show window would also be ostensible authority where an employee who has been placed in a position of right mat be assumed to have such authority as normally matches with the position, irrespective of what is his actual authority. For this case, entered i nto contract with Drew believing that he had proper authority of his employer. So, the employer is reasonable for the contract.A similar case studied is that ofWatteu v Fenwic, 1893In this case, a manager of a public house was expressly instructed byhis employer to order all hotel requirements through him. In breach of these instructions, the manager ordered some cigars and other goods from the plaintiff. It was held that the owner of thepublic house was bound by the managers act because it matches his position. (Emanuel, 2004) Advice to KirkKirk might not be liable for the contract if Drew as an agent acted on the contract by exceeding his authority. If for example there is an agreement during creation of agency that the agents have only authority to make sales agreements not exceeding a certain quantity, then Kirk might not be liable.Advice to DrewDrew might be liable for the contract if he exceeded his authority while making that contract. A breach of implied warranty of author ity arises when a person exceeds his authority. In this case the principal is not under no liability on the contract and the agent becomes personally liable for the breach of implied warranty of authority to the third party. It is immaterial for this purpose that Drew (agent) believed himself to have such authority.Case IIWendy was a manufacturer of table saw and she approached Bev to make an allege to sell table saws for 400 per table saw provided he picked them up from her factory. Bev agreed to Wendys offer even though he had authority to sell but not to purchase. Ten days after the