Business Law
Question 1
Explain in which way an agency may be terminated by operation of law. (3marks)
Answer:
An agency is created by express appointment when the principal appoints the agent by express agreement with agent. This express agreement may be an oral or written agreement between the principal and the agent. There are four factors can cause the termination by operation of law. i. Agency is terminated by frustration
In Marshall v Glanvill, Glanvill who is a firm of drapers appoints Marshall as a agent under an agreement terminable by six months. After six months, the agreement between them were terminated and he enlisted to Royal Flying Corps Marshall sued Glavill for the commission for six month. Judge held that the agency was frustrated and no need to pay commission. ii. Agency is terminated by death of the principal or agent
In Campanari v Woodburu, an agent, Campanari, an agent who wants to sell a picture on behalf of Woodburu and get £100 after the painting was sold. Before Campanari sell the picture, Woodburu died. Woodburn’s administratrix’s don’t want to pay £100 after the picture was sold. The court held that Campanari can get back the entitled expenses but he cannot get back the £100 commission fee since the agency was terminated due to Woodburn’s death.
iii. Agency is terminated by the insanity of either party
In Drew v Nunn, a husband was insane and his wife ordered goods from a tradesman who was unaware of the husband’s mental incapacity. The husband subsequently recovered his reason and refused to pay for the goods. After that he refuse to pay, the case bring to court. The court held that the insanity had terminated the agency between husband and wife, but the husband was stopped from denying that his representation was true and must pay for the goods.
iv. Agency is terminated by the bankruptcy of the principal
In Pacific and General Insurance Co Ltd v Hazell, Moore-Brick, Judge held that the appointed to act on behalf
Explain in which way an agency may be terminated by operation of law. (3marks)
Answer:
An agency is created by express appointment when the principal appoints the agent by express agreement with agent. This express agreement may be an oral or written agreement between the principal and the agent. There are four factors can cause the termination by operation of law. i. Agency is terminated by frustration
In Marshall v Glanvill, Glanvill who is a firm of drapers appoints Marshall as a agent under an agreement terminable by six months. After six months, the agreement between them were terminated and he enlisted to Royal Flying Corps Marshall sued Glavill for the commission for six month. Judge held that the agency was frustrated and no need to pay commission. ii. Agency is terminated by death of the principal or agent
In Campanari v Woodburu, an agent, Campanari, an agent who wants to sell a picture on behalf of Woodburu and get £100 after the painting was sold. Before Campanari sell the picture, Woodburu died. Woodburn’s administratrix’s don’t want to pay £100 after the picture was sold. The court held that Campanari can get back the entitled expenses but he cannot get back the £100 commission fee since the agency was terminated due to Woodburn’s death.
iii. Agency is terminated by the insanity of either party
In Drew v Nunn, a husband was insane and his wife ordered goods from a tradesman who was unaware of the husband’s mental incapacity. The husband subsequently recovered his reason and refused to pay for the goods. After that he refuse to pay, the case bring to court. The court held that the insanity had terminated the agency between husband and wife, but the husband was stopped from denying that his representation was true and must pay for the goods.
iv. Agency is terminated by the bankruptcy of the principal
In Pacific and General Insurance Co Ltd v Hazell, Moore-Brick, Judge held that the appointed to act on behalf
References: Suited 101.com Heather Rothbauer-Wanish Leading as a Management Function. Retrieved January 18, 2011 from http://www.suite101.com/content/leading-as-a-management-function-a124060#ixzz0zKHo9cOa Suited 101.com Heather Rothbauer-Wanish Effective Leadership Development in Nonprofit Organizations Retrieved January 18, 2011 from http://www.suite101.com/content/effective-leadership-development-in-nonprofit-organizations-a268339 Common Error. Retrieved 20 January, 2011 from http://www.rewriteright.com/common-errors.htm Suited 101.com Heather Rothbauer-Wanish Leading as a Management Function Retrieved September 26, 2010 from http://www.suite101.com/content/leading-as-a-management-function-a124060#ixzz0zKHo9cOa Suited 101.com Heather Rothbauer-Wanish Effective Leadership Development in Nonprofit Organizations Retrieved September 26, 2010 from http://www.suite101.com/content/effective-leadership-development-in-nonprofit-organizations-a268339