Bizorgs Case Study
BizOrgs Essay
Question: Is Pete bound to the written contract?
1. Agency
Whether an agency relationship existed between Pete and Sara
Agency is fiduciary relation which results from the manifestation of consent by one to another that the other shall act on his behalf and subject to his control, and consent by the other so to act
Here, Sara is employed by Pete who regularly uses her to for this type of work, pays for her flights to the different places to inspect and purchase pieces of art on Pete’s behalf. Additionally, Pete pays for all purchases Sara makes, therefore, maintaining control of Sara action. On her part, Sara performed all the work that Pete requested; therefore, she acted on behalf of Pete.
Consequently, Sara was acting …show more content…
Since Sara acted as Pete’s agent, Pete is bound by the contract and is obligated to pay Fred $275 k for the sculpture.
3. Did Sara breach duty of care that she owed to Pete?
An agent has the duties stated in the contract with the principle. In absence of a contract, the law imposes on an agent the duty of loyalty, obedience and reasonable care.
Here, Sara acted on behalf of Pete was obligated to a certain amount of obedience by following directions given to her by Pete. Pete specifically instructed Sara to no more than $250 K for the sculpture. However, upon learning that there is a competing buyer, she offered Fred $275 K for the sculpture. By offering Fred more money than she was authorized by Pete, Sara breached duty of care that she owned to Pete, and may be liable for the additional money that was spent on the sculpture.
4. Can Sara’s breach be remedied by the ratification of the contract?
The contract may be ratified by the principle, even if the agent was not authorized to accept certain terms, but principle knowingly accepts the benefits of the contract the agent entered into on principle
Question: Is Pete bound to the written contract?
1. Agency
Whether an agency relationship existed between Pete and Sara
Agency is fiduciary relation which results from the manifestation of consent by one to another that the other shall act on his behalf and subject to his control, and consent by the other so to act
Here, Sara is employed by Pete who regularly uses her to for this type of work, pays for her flights to the different places to inspect and purchase pieces of art on Pete’s behalf. Additionally, Pete pays for all purchases Sara makes, therefore, maintaining control of Sara action. On her part, Sara performed all the work that Pete requested; therefore, she acted on behalf of Pete.
Consequently, Sara was acting …show more content…
Since Sara acted as Pete’s agent, Pete is bound by the contract and is obligated to pay Fred $275 k for the sculpture.
3. Did Sara breach duty of care that she owed to Pete?
An agent has the duties stated in the contract with the principle. In absence of a contract, the law imposes on an agent the duty of loyalty, obedience and reasonable care.
Here, Sara acted on behalf of Pete was obligated to a certain amount of obedience by following directions given to her by Pete. Pete specifically instructed Sara to no more than $250 K for the sculpture. However, upon learning that there is a competing buyer, she offered Fred $275 K for the sculpture. By offering Fred more money than she was authorized by Pete, Sara breached duty of care that she owned to Pete, and may be liable for the additional money that was spent on the sculpture.
4. Can Sara’s breach be remedied by the ratification of the contract?
The contract may be ratified by the principle, even if the agent was not authorized to accept certain terms, but principle knowingly accepts the benefits of the contract the agent entered into on principle