Blw Aus Final

(question2) Issue: XYZ Fabric representative knew that Mercedes Benz had a valid 9month contract with MNO yet, the representative ignored the fact and said “don’t worry about MNO” and made a new contract.

Rule1: statute of fraud, when a breach of contract happens.

Rule2: Third party rights, limit the privacy of the particulars of a contract to the original parties of the contract.

Application: Yes, XYZ fabric is liable for the damages caused to MNO due to the termination of its contract. The representative was an agent of XYZ fabric because being an employee makes him an agent by agreement and to act according to the rules of the company. Therefor, any contract the representative enters to on behalf of the company is legal and binding on the company and must be fulfilled. In addition, the agent of XYZ fabric convinced Caroline to reveal the details of the contract between MNO and Mercedes he contravened the fabric of this rule therefor, any conclusion which was based on this information given is a breach.

Conclusion: Since the representative of XYZ broke the statute of fraud and the Third party rights, it makes MNO have a claim against XYZ’s representative.

(Question3) Issue: The XYZ representative knew that there was a contract between MNO and Mercedes Benz yet he insisted on having a new contract. `since he is an agent of XYZ this means he represents them.

Rule: Agents authority, where the agent can act behalf of the company

Application: Since XYZ gave the authority to their representative this means that they are liable for the acts done.

Conclusion: XYZ company will be held liable since they gave the authority to their representative.