Terry’s authority in enforcing a contract to be binding to another party. Actual Authority Express Authority ‘An actual authority is a legal relationship between principal and agent created by consensual agreement’ (Lord Diplock). The express grant written in clear terms states Terry is “authorised to enter contracts on LML’s behalf‚ up to a monetary limit of $500‚000”. However‚ the fact that Terry devises a new contract for a price of $1‚400‚000 means he no longer has express authority as an
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the powers of the directors‚ it is their own fault‚ and if they give credit to any unauthorized persons they must be contented to look to them only‚ and not to the company at large. The stipulations of the deed‚ which restrict and regulate their authority‚ are obligatory on those who deal with the company. However‚ a qualification to the rule of constructive notice developed‚ which favoured third parties as against companies. This rule‚ known as the indoor management rule may be relied on by a
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created in many ways: (a)By express appointment by the principal (actual express authority) (b)By implied appointment by the principal (actual implied authority) (c)By the agent occupying a position which would normally carry with it authority to do an act of the kind in question (usual authority) (d)By the principal adopting the act of an agent via the process of ratification when the agent acted without the authority of the principal (agency by ratification) (f)By estoppel 2. Who is an agent
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This case comes under Law of Agency. Agency Law is concerned with any “principal‚ agent and third party” relationship; a relationship in which one person has legal authority to act for another. Agency involves three parties : • Principal – Mr. Smithfield • Agent – U.K. Rail • Third Party – Pig resort/Care Centre Agency relationship may arise in five ways and one them which arise in this case is “Agency Of Necessity” and the requirements are : • Genuine necessity – there was a delay in delivering
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Constitution and replaceable rules A company’s internal management may be governed by: provisions of the Corporations Act 2001 (the Corporations Act) that apply to the company - known as replaceable rules; a Constitution; or a combination of both (s135 and 136). (Replaceable rules outlined contains a detailed listing of the text of the rules). Replaceable rules do not apply to proprietary companies where the one person is the sole director and sole member‚ although a constitution may be
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Many people think that power and authority is the same thing. They are not. They have the same desired outcome but by definition are different. Merriam-Webster defines power as “the ability or right to control people or things” (“Power”). Authority is defined as “the power to give orders or make decisions: the power or right to direct or control someone or something” (“Authority”). Power is often identified by people who hold a particular office or position. Just because a person may assert a powerful
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Week 9 Essay 1 Power and Authority Although they are very closely related‚ power and authority are two different concepts. Power is needed in order to establish authority‚ yet it is also completely distinct from authority (Week 9 Study Notes). Power is defined in the course study notes as the "ability of individuals or groups to get what they want despite the opposition". Power is derived from a variety of sources including knowledge‚ experience and environmental uncertainties (Denhardt
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Authority Authority‚ power and legitimacy are perceived as fundamental elements of contemporary society for the sole reason that these are the defining features of a culture with political and social organisations and hierarchies. The term ‘authority’ is commonly misused by academics as a synonym for ‘power’ or ‘legitimacy’ which has led to confusion regarding the entire concept of authority. Authority is generally defined as a person (or group of people) who has the power or right to give orders
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termination of the agency to the third parties (200 customers). The termination of an agency extinguishes an agent’s actual authority to act on the principals behalf specifically in this case due to the fact Potter fired Aker‚ then terminated the agency. If the principal fails to give the proper notice of termination to the third parties‚ the agent still has the apparent authority to bind the principal to the contracts. If this were to happen‚ the contracts would be enforceable against the principal
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Contracts Act 1950 states that an agent cannot delegate authority‚ unless it falls within the exceptions. Panorama Development(Guilford)Ltd v Fidelis Furnishing Fabrics Ltd states that an agent can have implied authority arising out of his position in a business‚ such as that of a company secretary. Graphic Lines Pte Ltd v Chai Chee Mein states that apparent authority can arise where the principal makes a third party believe that the agent can
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