Commercial Law Essay

1482 WordsNov 8, 20116 Pages
Commercial Law Assignment Part A i) This scenario is on agency and their authority. Brenda is an agent of Gringotts as the manager of the bank; she has limited authority which she does not clarify properly to Amy. Although in Garnac Grain Co Inc v H M F Faure and Fairclough Ltd[1] Lord Pearson said ‘the relationship of principal and agent can only be established by the consent of the principal and agent’ it is clear that there is a relationship. The House of Lords in Boardman v Phipps[2] said that although there m⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪tors pass a resolution which authorises two or their number to sign cheques. It is implied when it is inferred from the conduct be fine. According to the judgement in Lloyd v Grace, Smith & Co[3] where the agent has no authority and has exceeded the authority which has been given to him, he is liable. Munday[4] believes that the third party (Amy) is entitled to believe that the agent has the usual authority if she does not know or is not expected to know. Watteau v Fenwick & Co[5] makes the principal liable for the agent’s wrongdoings. It does not allow for the third party to be sued. However, Keenan and Smith[6] state that ‘if the third party knows of the agent’s lack of authority, she does not obtain a contract with the principal’. Amy had previous course of dealing with Brenda as she received three loans of up to £25,000 approved by her. In Hely-Hutchinson v Brayhead Ltd[7] Lord Denning M⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪⨪g director. They thereby impliedly authorise him to do all such things as fall within the usual scope of that office’. In

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