Nature of Agency

OPTION 2: THE NATURE OF AGENCY VIDEO

Devon K. Russell

LAW/531

March 18, 2013

Pierre A Kleff Jr.

OPTION 2: THE NATURE OF AGENCY VIDEO

During this week’s learning exercises The Nature of Agency according to Chesseman (2010), detailed several issues and controversy that may arise in the negotiations and agreements between suppliers and purchasers. This paper will outline an analysis of the issues presented in The Nature of Agency video which are directly related contractual agreements.

Video Summary 400

The Nature of Agency Video expressed a situation between a supplier, Non-Linear Pro who filed a suit against Quick Takes Video due to a disagreement regarding a collection of money that plaintiff feels they are owned. The grounds for this suit were brought about due to the fact that one of the partners verbally gave consent for one of his employees to work out “the details” regarding a future purchase of supplies after a trial period. The employee Janet mistakenly signed a lease agreeing to terms of a contract however the question is does she really have the authority to bind the company into that agreement. In addition the supplies that are in question didn’t work effectively for Quick Takes Videos needs so they so they returned it after less than a month of use. Nevertheless with the agreement that Janet signed, which outlined charges of a three-months lease however there was a three month contractual agreement. This video outlines the fact that Janet had a level of implied authority to authorize the supplies and contact on behalf of the company. Due to the circumstances surrounding this case several questions arise which, are centered on the concept of the employees role within the organization and impression that was giving and misguided direction which points to the validity contact. With all things considered the relationship of these two companies also provides bases for the law suit, with both companies operating...