Preview

Comparing Kennedy V Glass: Kennedy Vs. Glass

Good Essays
Open Document
Open Document
1752 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Comparing Kennedy V Glass: Kennedy Vs. Glass
Agency refers to a consensual bilateral agreement whereby one party, the principal authorizes another, the agent, to exercise decisions on his behalf, usually with a third party involved. In this particular case Duncan is deemed to be the principal, Fred the agent and the plumber the third party. There are many rules when it comes to the creation of an agency contract, mainly the principal must be in existence during time of agreement and he must also know and authorize the agreement. If an agent makes a decision on behalf of a principal who is unaware of the decision this can still be seen as an agency contract through ratification, “to ratify”(to adopt) [Blackburn, G.B, 2011. Business Law in Scotland . 2nd ed. Alva Street, Edinburgh: Thomas …show more content…
On one occasion, Kennedy introduced Glass to a company that had machinery and plant for sale. Glass entered into a contract with the company to buy it - but failed to carry out the contract. Kennedy said there had been an arrangement that he would get £250.00 commission. Glass said it was £50, and only if the contract was carried out. Held, Kennedy was entitled to £50 on a quantum merit basis he had taken considerable time and trouble on Glass's behalf. Fred had taken considerable amount of time to make sure that the pipe was fixed and that he has replaced the door that he was forced to take down Fred is not asking for compensation for the door but should not be liable for paying the …show more content…
Mr. Swaffield sent his horse by railway to a station at Sandy. The horse arrived late at night, and the railway company lodged the horse overnight for their own account at a livery stable. Mr. Swaffield failed to collect it on the following morning. The only basis on which he was prepared to give any instructions about the fate of his horse was that the railway company assumed all responsibility for storing and delivering it to him from the time of its arrival at Sandy. Held, Kelly CB, concurring treated the principle as applying because it was necessary for the railway company to incur the expenditure. ‘They had no choice unless they would leave the horse at the station or in the high road to his own danger and the danger of other people (Great Northern Railway Co -v- Swaffield).’ Using this example it was necessary for Fred to rectify the burst pipe issue as it may have an adverse effect on the electrical systems, potentially causing power outages and damaging the infrastructure of the apartment and should not be liable for the cost of fixing the pipe. There are many differences that can be drawn from these two cases, one of which being the crucial fact that Duncan neglected to provide Fred with legitimate contact details leaving Fred with no other option but to proceed to take drastic action to prevent any further damages that may have occurred as a result of leaving the issues at

You May Also Find These Documents Helpful

  • Satisfactory Essays

    For the case of Sopov v Kane Constructions Pty Ltd (No 2) [2009], the appellant engaged the respondent as contractor in a construction project. The appellant repudiated the contract by wrongly calling on the respondent's bank guarantee, in response to which the respondent terminated the contract and claimed damages for quantum meruit. The Court of Appeal applied the NSW Court of Appeal decision in Renard Constructions (ME) Pty Ltd v Minister for Public Works (1992) 26 NSWLR 234 which provided that an innocent party who accepts a defaulting party's repudiation has the option of claiming either damages for breach of contract, or a quantum meruit for the fair value of work done. The initial contract price was held to be only evidentiary for the…

    • 255 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    HCC 40, PC 3: Court Case

    • 745 Words
    • 3 Pages

    .Application: according to the written agreement LLC payed the capital account and 2005 compensation to Olson.Olson may argue that due to the oral agreement LLC breached it`s duty to pay fair market value of a member.on the other hand LLC may argue that it only owe duty according to written agreement about paying the 2005 compensation and capital account and oral agreement is not accepted by the LLC.The Olson may argue that the LLC has to pay the compensation that had occurred not…

    • 745 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Legt2741 Week 4

    • 1192 Words
    • 6 Pages

    Agency relationship exists between partners as stated under section 5 – a partner has the power to bind the other partners when acting within the normal scope and authortiy of the business. That is, innocent partners may still be liable for the actions of a partner who may have acted in breach of the partnership. Mercantile Credit Co Ltd v Garrod 1962. Disadvantage (D)…

    • 1192 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    Bus 475 Wk 2 Quiz

    • 320 Words
    • 2 Pages

    The agency theory is defined as the relationship between a person that has employed another person to carry out his, or her plans, or wants. This may be a relationship between hands off owners and top management, or between managers and other employees that have been designated to complete a task by that manager. As long as the person placed in charge has a personal reason to follow the plan, such as stock options, he or she will not consider following a plan devised to benefit his or her personal…

    • 320 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Agency is a legally recognized relationship that allows an attribution of one person’s behavior to another. This carryover process is two-sided in that both benefit and burden inure to the parties involved in the agency relationship.…

    • 4350 Words
    • 18 Pages
    Powerful Essays
  • Satisfactory Essays

    There is a very good alternative to all the above confusion. By following this you get only the peace of mind but also maximum settlement for your claim and at the same time keep your legal costs at a…

    • 487 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    The relationship established between two parties for lawful purposes, in which one party, named the principal, requests the other party or agent to represent him is called Agency. Agency relationships create fiduciary duties between the principal and the agent (Kubasek et al., 2012). In this paper, Team B will discuss the different types of Agency and the legal consideration surrounding each of them.…

    • 756 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    You run a successful paper mill and send out your three best personnel to secure new wood pulp sources using due diligence and skill. Applying the agency principles outlined in this chapter, answer the following questions. Delilah, does not return with wood pulp, but brings back three contracts. Acting within the scope of her authority, she contracted with Evon, who knew your identity at the time; Felipe, who knew that Delilah was acting on behalf of someone but not whom; and Giorgio, who did not know that Delilah was acting on anyone’s behalf. For which contracts, if any, are you liable? For which contracts, if any, is Delilah liable? Explain.…

    • 404 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Questions on Finance

    • 2776 Words
    • 10 Pages

    Agency relationships occur when one or more of the principals hire an agent to perform a service on behalf of the principals. Agency costs are costs incurred by the owners of a firm when others manage the firm.…

    • 2776 Words
    • 10 Pages
    Good Essays
  • Good Essays

    Business Association Outline

    • 14781 Words
    • 60 Pages

    Agency is a fiduciary relationship which results from the manifestation of consent by one person to another that the other shall act on his behalf and subject to his control and consent by the other to so act.…

    • 14781 Words
    • 60 Pages
    Good Essays
  • Satisfactory Essays

    essay

    • 260 Words
    • 2 Pages

    If a third person has no knowledge about the fact that the agent is acting for a principal, then both the agency and the principal is known as undisclosed ones. The agent of an undisclosed principal can be held liable on the contract as the real obligor as she contracted in that capacity. Similarly, an undisclosed principal can also be held liable as he must also assume its burdens. The liability of an undisclosed principal and the agent is an alternative liability. It means that the third party can only make either the principal or the agent liable and not both of them together. The contract with Giorgio is an undisclosed one can you and Delilah are both liable. The situation is the same with Felipe although the agency is known. He can hold either the agent or the principal liable for the contract. However, even knew that Delilah was your agent and that you were the principal. Therefore you are liable but Delilah is not. Law of agency and undisclosed principal can be summarized as follows. An undisclosed principal may sue and be sued on a contract made by an agent on his behalf, acting within the scope of his actual authority. In entering into the contract, the agent must intend to act on the principal’s behalf. The agent of an undisclosed principal may also sue and be sued on the contract. Any defense which the third party may have against the agent is available against his principal.…

    • 260 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Business Law Case Study

    • 1274 Words
    • 6 Pages

    In this case, the plaintiff claimed negligence against the Sydney tramway authorities. In order for a negligence to be established, the authorities have to be proved owned a duty of care to the plaintiff. In this circumstance, it refer to the safety of tramway passengers. Whereas a duty of care occurs, the next problem will be whether the authorities have breach their duty of care to the plaintiff. There has to be some safety concerns or risks that the authorities have not take into consideration. Those risks can result in significant damage to the plaintiff.…

    • 1274 Words
    • 6 Pages
    Good Essays
  • Good Essays

    The following information is advice for Mr Murray Kapp in regards to whether Mr Bob Mann of Weimar Investments Ltd is vicariously liable for the negligent conduct of Mr Barrie Bauer. In order for liability to exist, the contract between Mann and Kapp must be a contract of service (rather than for). To determine this, there are multiple legal tests that should be considered including, the ‘control’ test, the ‘organisation’ test, the ‘business’ test and finally the ‘multifactor’ test.…

    • 922 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    ‘An agency relationship exists when one or more individuals (called principals) hire others (called agents) in order to delegate responsibilities to them’ (Baiman (1990: 342)) Agency relationships are administrated by implicit or explicit contracts between agents and principals. The assumption of agents’ self – interest which contradicts with the principals’ interest is the basis of the agency problem.…

    • 1229 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    The Nature of Agency

    • 385 Words
    • 2 Pages

    A contract agreement is essential when two or more parties decide to do business. Even though verbal contracts is considered legal, companies or individuals involved in the contract negotiations takes the risk of only hearing what they want to hear. According to the video, The Nature of Agency (Cheeseman, 2010), the question was asked by a partner of Quick Takes Video, how can an employee sign a binding contract with Non-Linear Pro without the authorization from the owners. In the video, the owner of Quick Takes Video informs the salesman to make all arrangement with his employee. At that point, the owner put himself at risk by allowing the salesman to assume his employee has the authority to finalize contracts. As an owner with eight years’ experience in contracts agreements, he should have known not to allow any assumption during verbal agreements. At the very least, he should have made it clear; any final contract agreements can be finalized only by the owners of the company.…

    • 385 Words
    • 2 Pages
    Satisfactory Essays