Agency Law Case Study

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PART A To begin with, Agency law is the relationship between one individual who acts on behalf of another individual or company. Usually the company or other individual is known as principal. An agency is generally created when an agent is hired by the principal through a contract and it states that the principal is held responsible for any actions carried out by the agent, whilst the agent’s actions are parallel to those of the principal’s. These forms of contracts are usually enforced by written agreements done by the power of a lawyer. There are many ways in which the contract of an agent can be terminated but to be precise there are two general headings; (i) termination by act of the parties and (ii) termination by operation of law. In…show more content…
The contract of agency can be terminated if it is mentioned in the agreement between agent and principal. For example, if the contract consists with an appointed end date or once a certain event takes place the contract is then terminated after the event occurs. In the case of Page v Combined Shipping and Trading Co Ltd [1997] 3 All ER 656, Page the agent in this case, had a complicated agreement involving sales of the principal’s company. The agent was informed that the principal’s parent company Tiger Oats Ltd, had stopped investing in the operations of the principal’s current company and as a result the principal’s company activity had to end. The agreement between both parties was supposed to last for four years however; the agent received the news five months after signing the contract. As a result, the agent had taken this as a breach of contract before expiry date and had claimed for damages for the refutation. Eventually court had agreed to the claim the agent had brought…show more content…
To begin with, in this case law the agent of the railway company had decided to sell the tomatoes that had gone bad, this was the outcome as the employees of the railway company had gone on a strike. Consequently, it had affected the arrival of the tomatoes to the harbor. This would not be called an act of necessity as the agent had decided to sell the tomatoes locally. In comparison to the current situation, we know that the Fred did not break into Duncan’s apartment out of curiosity but out of genuine concern for his neighbor’s house. Thus, it was an act of genuine

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