BS Week 6.docx - LA 1 In April 2015 Collector appointed...

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LA 1 In April 2015, Collector appointed Ageless Antiques, a licensed antique dealership, as agent to find and purchase antique baby grand pianos manufactured by Steinway between 1880- 1900 to add to Collector’s collection. Identify and explain, according to the Restatement of Agency, 6 ways a principal may be bound to contracts entered into by an agent on behalf of a principal. Analyze each using the short scenario above. One way the principal may be bound to contracts is from Express Authority . Express Authority is “The strongest form of authority is that which is expressly granted, often in written form. The principal consents to the agent’s actions, and the third party may then rely on the document attesting to the agent’s authority to deal on behalf of the principal”( The Saylor, 2014 ). For the case above : The agent was appointed by the principal, and we do not know if a written contract was created, and signed by both principal and agent, but the agent has the authority since the principal appointed the agent (Ageless Antiques). The second way the principal may be bound to contract is through Implied Authority . Implied Authority; “Not every detail of an agent’s work can be spelled out. It is impossible to delineate step-by- step the duties of a general agent; at best, a principal can set forth only the general nature of the duties that the agent is to perform.. But the law permits authority to be “implied” by the relationship of the parties, the nature and customs of the business, the circumstances surrounding the act in question, the wording of the agency contract, and the knowledge that the agent has of facts relevant to the assignment. The general rule is that the agent has implied or “incidental” authority to perform acts incidental to or reasonably necessary to carrying out the transaction” ( The Saylor, 2014 ). For the case above: The principal appointed the agent (Ageless Antiques) through Implied Authority, not every detail was written out, but the principal made it clear that he or she was looking for specific clocks.
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