Agency and partnership law Case Study Example | Topics and Well Written Essays - 3500 words

Agency and partnership law - Case Study Example The scope here is primarily to evaluate understanding a specific case as described in the following section and offer necessary advise to ADC, one of the parties involved based on applicable laws and legal liberty. In order to advise ADC of their rights and obligations, it is important to focus on the effect of contract made by the agent Andrew, his status in terms of authority based on agreement, his duties towards the principal and his right towards the third party. A thorough and detailed analysis and interpretation follows in the forth coming sections.ADC Ltd is a company needs 20 sets of Model XXP computers by Christmas 2009 by spending no more than 20,000. Dan is the sales assistant from PC Express, who offers Andrew 20 sets of the new Model XXP Plus computer at a discount price of 30,000. Andrew is sure that ADC Ltd would want the new model of computer rather than the old model and asked Dan to wait for an hour so he can speak to ADC Ltd in order to get the permission. He disc loses that this order would be beyond his power and he is only acting as the agent. When Andrew rings Dan back to confirm the order he is asked specifically whether he received consent from ADC Ltd, Dan is told that it has all been sorted and that permission has been given, the order is made and the goods are delivered. However, Andrew did not in fact seek permission from ADC Ltd, he did ring but no one answered the phone call. Considering he had to contact Dan from PC Express in an hour, he concluded the deal before the written or oral permission from ADC Ltd.... He discloses that this order would be beyond his power and he is only acting as the agent. When Andrew rings Dan back to confirm the order he is asked specifically whether he received consent from ADC Ltd, Dan is told that it has all been sorted and that permission has been given, the order is made and the goods are delivered. However, Andrew did not in fact seek permission from ADC Ltd, he did ring but no one answered the phone call. Considering he had to contact Dan from PC Express in an hour, he concluded the deal before the written or oral permission from ADC Ltd. After Christmas, ADC Ltd asked Andrew to buy another 35 sets of Model XXP computers due to the expansion of the business. James owns a company involved in the production of computers and his business is mainly on importing computers from China and reselling them to the customers in the UK. James has just imported some Model XXP Computers from China. Knowing that Andrew often works as an agent for many companies in the computer business he contacted him with the purpose of concluding a contract. James is aware that Andrew works as an agent for ADC Ltd. However, James does not want Andrew to contract with him on behalf of ADC Ltd as the agent as in every previous transaction ADC Ltd has been very late in making payments. Andrew is aware of the previous problems and of James' current instructions. Andrew enters into a contract with James and signs the contract 'as the agent' for an unnamed purchaser. Some weeks later James discovers that the Andrew contract with him on behalf of ADC Ltd and he pulls out of all future obligations under the contract on this basis. 2.