Exam 17: Agency and Franchising

Jack previously transferred a piece of waterfront property next to his home to his daughter Alana.One day a real estate agent knocked on his door and asked whether the property was for sale.Jack told the agent that it was for sale "for the right price".The agent told Jack he had a customer who might be interested in buying it.Jack immediately signed a listing agreement with the agent giving him the authority to sell the property on his behalf.He failed to disclose the fact that he was not the actual owner.Shortly thereafter the agent returned with an offer.Jack countered the offer and the agent returned a short time later to advise that there was a binding deal.Jack subsequently told Alana that he had sold the property on her behalf and made a substantial profit.She told her father that she "did not want to sell" and that she was planning on building a home on the property in the near future.Jack immediately contacted the real estate agent and informed him that he was not the actual owner and that his daughter did not want to sell.In these circumstances,the purchaser's best remedy is

Ingrid was the purchasing agent for Fashion Boutique Inc.She was authorized to place orders up to $10 000 but would have to get the owner's approval for anything larger.On January 17,she placed an order for $13 672 without getting approval.Will the vendor be able to enforce this contract?

Give reasons why a company would expand through franchising rather then through the setting up of its own branches.

A company that represents,either by words suggestive of that relationship or by acquiescing in similar contracts made for it by that person in the past,that someone is its agent,is permitted to deny any such relationship,upon the provision of notice.

What documents can an agent who has been granted a power of attorney sign.

David,the owner of BayView Reality Inc.,decided to buy one of his own firm's listings for investment purposes.The principal (owner of the property)refused to pay any commissions or reduce the price on this transaction.Can this impasse be legally resolved?

An agent's authority may be terminated on any of the following situations EXCEPT

Charlie owns a small parcel of land in Toronto.He wants his sister,who lives within a short distance of the land,to sell the parcel for him.In order for his sister to be able to sign all the real estate documents,Charlie needs to authorize

Why is it important that a company advise all of its customers and suppliers that it has fired an employee?

John,while acting as Henry's sales agent,negligently drives his car into the wall of Alice's house.In this situation

How may the transaction known as consignment create an agency by estoppel?

In circumstances where the agency relationship has been agreed to by the parties for a specific fixed term,can either party give notice to the other to terminate the agreement prior to the date?

Jonathan is a used car enthusiast.He enters into an agency agreement with Andrea.She owns a used car lot.The agency agreement limits Jonathan's authority to purchase used vehicles for under $25,000 and to ship them by flat bed trailer to Andrea's lot.When passing through Toronto one Saturday morning,Jonathan stops at the auto auction and sees a 1985 Jaguar that he wanted to bid on for Andrea.He was successful and purchased the vehicle for $24,000.However,he had no flat bed trailer and as such decided to drive the vehicle to Andrea's lot in London.He immediately arranged for automobile insurance on her behalf but without her authority.Near Kitchener he was involved in an automobile accident which resulted in the jaguar being a total write-off.No one was injured.He contacted Andrea and informed her of the situation.She immediately contacted the insurance company to ratify the insurance contract.In these circumstances

Until yesterday,when X Co.fired Henry,Henry was employed as a purchasing representative,and over the time,he worked for X Co.,Henry compiled an extensive list of X Co.'s customers.Henry,who is extremely angry over being fired,decides to get back at X Co.,so he contacts X Co.'s largest supplier and on behalf of X Co.enters into a contract for the purchase by X Co.of 1 million dollars worth of goods that X Co.really has no need for.In this situation

An agency agreement may be express or implied,oral,written,or in writing under seal.

Identify which duty of agent to principal,if any,is being breached in the situations below. a.X,a valued client of the agent,requests the agent to attend a land auction and to bid on a specific piece of land if it is free and clear of encumbrances and restrictions.The agent,although not knowledgeable about auctions or real estate,attends and successfully bids on the property.However,the agent did not understand the legalese contained in a brochure given each of the bidders,which stated that the property the agent obtained would be subject to a restrictive covenant restricting the development and use of the property. b.The agent is instructed to attempt to purchase a specific piece of land and is authorized to offer up to $100 000 for same.The agent purchases the property for $85 000 and collects $95 000 from his principal,and in so doing advises the principal that the acquisition cost was $95 000. c.The principal retains agent X due to the agent's public reputation as an outstanding tax expert and requests that the agent attend a tax inquiry to represent him.X agrees to do this but instead delegates it to a sub-agent,who unsatisfactorily represents the principal. d.The principal instructs the agent not to pay more than $50 000 for a lot.The agent commits its principal to pay $60 000 for the lot.

A entered into an agency agreement with agent B.B entered into a contract under seal with third party C.A was not named in the contract,but B described herself as "agent." Which one of the following statements is best applied to these facts?

William has acted as agent for his principal Diana pursuant to an agency relationship of no fixed term.Suddenly and without warning William dies.What is the effect of his death on the agency relationship and what steps should Diana take,if any,in relation to third parties?

James was an ordinary salesman for Bulldog Electric Ltd.,but his business card read "Territory Manager." He had no authority to sell his company's products for a reduced price,yet he told a potential customer,"I'll give you a 10 percent reduction if you place an order today." Legally speaking,will the customer be able to get the reduced price should he sign the contract?

An agent will be liable for breach of warranty of authority if