Nature Agency Video
The issue that is presented in this video is pertaining to the authority of the agents in business law. Such issues are very common since not much attention is paid to the rules of law in small businesses. As for this scenario, we see that the "agent" (Janet) signed a document that bound Quick Takes (the company she works for) to pay the partner for some procured equipment. Later on, we find out that the Janet was in fact, not authorized to sign that document, since the owner of Quick Takes did not allow her to sign contracts that bind the company for make payments.
On the other hand, there is also a side issue, which is not that significant; and that is that one of the employees (who is a very competent salesperson) has not been informed of the whole situation. Before we proceed towards making an analysis of this video, we shall define some terms so that there isn't much confusion created.
General Nature of Agency
"This is a maxim of the common, and it is the basis of the law of agency. Subject to the terms of the Contracts (Rights of Third Parties) Act (1999), when a contract is made under normal conditions, when a person makes a contract with another person, the third party is not allowed to obtain any kind of benefit from it, neither is that person under any obligation as a part of that contract." (Principles of Business Law, 292).
Nonetheless, if one of the people who are entering the contract makes some other person do an action that he was supposed to do himself, meaning authorizes another person to do that action, and then that third person becomes the agent of the person who authorizes him (Agency Law -- U.S., 2012). The agent is then responsible for the position of the first person while making transactions, he is then liable for the act and at the same time he can enjoy the benefits of that position, according to the aforementioned maxim.
When considering commercial issues, the association of agency normally emerges as a result of a deal between two people. One of these two people authorizes another person (agent) to work on the contract...
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