Exam 19: Agency and Franchising

If my son takes a luxury cruise without my permission and has the company send me the bill and I pay, I create the impression that I will always pay for this type of conduct. If I fail to inform the company that I will not pay again, this refers to the idea of

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 brother to be able to sign all the real estate documents, Charlie needs to authorise

If an agent is liable for fraudulent misrepresentation in making a contract, the third party may rescind the contract. And if the agent was acting within his apparent authority, the third party may sue the principal as well as the agent for

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?

How is the agency relationship used in a corporation and a partnership?

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

Travel Tours Inc. sells special holiday packages that are arranged by other small companies and individuals. Each time a holiday package is sold, Travel Tours adds a service charge to the quoted price. Travel Tours justifies these charges based on the fact that

Clark is an employee of the Brown Seedling Company. He is authorised to buy various seeds from the farmers that produce such seeds. He works out of his house and is on the road most of the time. Clark is a

Zelda is a Hollywood movie star wanting to buy recreational property. She describes her specifications to Craig and asks him to make an offer to purchase if he finds a suitable property. She asks him not to divulge her identity. Craig finds an ideal property and makes a written offer in his own name to purchase the property for $500,000. The vendor signs an acceptance. Zelda suffers a financial setback and refuses to go through with the contract. Whom can the vendor sue?

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

In Montreal, Mike represents six different Canadian business firms in the sale and servicing of their products. Mike is a

If a business has represented someone to be its agent, either by words suggestive of that relationship or by acquiescing in similar contracts made for it by that person in the past, it will not be permitted to deny the existence of an agency. What phrase is used to describe this representation or conduct on behalf of the business?

For "selling- off- price- list", Vera was terminated from her position as sales rep for the Crougar Co. Two months after the termination, Vera is still sending in orders from her former customers. This raises the issue of

Joe is appointed to sell a yacht on explicit instructions from the owner. Joe is acting with

Alwin signed up Twig as a talented bareback stunt rider. He was thinking his Uncle would hire her for his circus yet he had no direct authorisation to be an agent for his Uncle. Is this contract enforceable by Alwin's Uncle?

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 nor reduce the price on this transaction. Can this impasse be legally resolved?

The franchisor, Garden Delicious Inc, has 73 franchised outlets across Canada using the theme "healthy eating". Its Surrey, B. C. franchisee, Tom Cain, has been adding bagels to the regular "authorised" menu. Garden Delicious Inc. has asked Tom on several occasions to stop, but he has refused saying that the contract does not specifically prohibit adding items to the menu. Legally speaking, will the franchisor be able to stop this practice?

What are the two levels of relationship between a principal and an agent?

Why should an agent representing a principal always make it clear to a third party that the agent is representing a principal, and not acting on the agent's own behalf?

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