Nature_of_Agency_Video_Option_Two

The Nature of Agency Video Option Two Barbara G University of Phoenix Business Law 531 June 4, 2012 The Nature of Agency Video Option Two Quick Takes Video is in a contract dispute with Non-Linear Pro because each side has a different understanding of a trial use of editing equipment. Hal Boylston from Quick Takes Video met a representative of Non-Linear Pro at a professional conference. Hal liked what he saw at the conference and invited the representative from Non-Linear Pro to Quick Takes Video. The representative offered equipment, education to Quick Takes Video staff, and support to trial the editing equipment. Hal told the representative from Non-Linear Pro to “work out the details” with Janet and agreed to trial the editing equipment. The agreement was verbal with a handshake. Hal believed the trial was for a month at no cost to Quick Takes Video. Unfortunately, when the equipment was delivered, Janet signed a three-month leasing agreement. Janet believed the paper she signed was a delivery slip, not a leasing agreement. Several weeks after trialing the equipment, Hal and the editing team at Quick Takes Video decide the editing equipment is not working and returns the equipment. Non-Linear Pro sends a bill to Quick Takes Video for three-month’s lease. Hal decides to reach out to Non-Linear Pro for arbitration and is awaiting a response. Mary is Hal’s partner in Quick Takes Video and has questions related to the signed contract because neither Hal nor Mary signed the lease. She questions whether Janet’s authority to bind Quick Takes Video to the contract. Principal versus Agent A principal employs another person to act on his or her behalf. Cheeseman (2010) defines an agent as “a party who agrees to act on behalf of another.” An agency relationship is a contractual bond that involves the agent to act of behalf of the principal to create a legal relationship with a third party. The principal expressly or impliedly authorizes the agent to work under his or her control and on his or her behalf. The agent is required to negotiate on behalf of the principal or bring him or her and third parties into contractual relationship. Non-Linear Pro accepted Janet’s signature as an agent for Quick Takes Video on a three-month lease. They could enter into this agreement because Hal directed Janet to “work out the details” with a sales representative from Non-Linear Pro. Also when the equipment was delivered, Janet signed the contract without hesitation as a legal representative of Quick Takes Video. Express Authority versus Implied Authority An agent for a business is an employee that is authorized to enter into binding contracts for the employer. The agent acquires authority to enter into contracts on behalf of his/her employer by either express or implied authority. Express authority is given in an agency agreement that is the agent posses certain apparent authority to act on the employer’s behalf (Cheeseman, 2010). Implied authority is an inferred ability of an agent to make a legally binding contract. If an agent or employee is wearing a nametag bearing the name of the company or if that agent is functioning in an obviously authorized capacity on behalf of the business, that person carries an implied authority to act as the business’ agent. Janet has implied authority by history of her position at Quick Takes Video and verbal direction from Hal. Janet has the authority to order supplies for the editing department and signs legal documents for shipments and delivery. Hal, other employees, and businesses look to Janet to exercise her authority in her normal job duties. Janet acts in the companies best interest when performing her duties and exercising her authority. Janet mistakenly signed a lease agreement, thinking the document presented to her by Non-Linear Pro was a delivery slip. She should have read the delivery slip closer to assure what she was signing was a delivery slip. But, she did sign a three-month lease contract with Non-Linear Pro. The lease may be binding because she has implied authority from her employer to enter into agreements on their behalf. Conclusion Mary and Hal question whether the signed lease with Non-Linear Pro is legal and binding because neither signed the lease agreement. Janet mistakenly signed the lease agreement as their agent. She is defined as their agent because she orders supplies and signs binding contracts for Quick Takes Video as part of her duties. Hal also directed her to act as the agent of the company to the sales representative from Non-Linear Pro at their initial meeting. Hal directed the sales representative to work with Janet. Janet was an agent working on behalf of Quick Takes Video and is authorized to enter into legal and binding contracts with third party contractors. References Cheeseman, H. R. (2010). Business law: Legal environment, online commerce, business ethics, and international issues (7th ed.). Upper Saddle River, NJ: Prentice Hall.