Business Law
There are many laws in the world today that some may find are neither rational nor fair for all the parties involved in the situation. I have chosen two laws that I do not think are logical, these two are apparent authority and executory process.
The first law I will be discussing is an agency this is the right one person has to execute business on behalf of another person or corporation. There are three important parties involved in an agency relationship; the agent (this is who can enter a contract on behalf of someone else), a principal (this is the seller), and a third party (this would be the buyer). Under this law there are three different types of agency authority; expressed authority, implied authority, and apparent authority. I do not agree with the last of the three, apparent authority.
Apparent authority refers to a situation where a reasonable person would understand that an agent had authority to act. Another word the principal is bound by the agent’s actions, even if the agent had no actual authority. For the principal to be bound there must be some act or some knowing omission on the part of the principal. However if the agent acts in the presence of the principal and the principal does not say anything to the third party to correct the agent, the principal is bound by the agreement made between the third party and the agent.
An example of this would be, if I owned a clothing store and my friend, Alisha, walked in and I told her I was busy at the moment, she could have a seat behind the counter and I would be with her as soon as I finished with my customer. Alisha heard my business phone ringing and took it upon herself to answer the phone. When doing so she offered the customer a deal of a life time buy two shirts get ten shirts free. Even though I did not give Alisha the authority to answer my business phone nor did I give her authority to give such a deal to a customer, the customer has no idea of this, which therefore would give Alisha
The first law I will be discussing is an agency this is the right one person has to execute business on behalf of another person or corporation. There are three important parties involved in an agency relationship; the agent (this is who can enter a contract on behalf of someone else), a principal (this is the seller), and a third party (this would be the buyer). Under this law there are three different types of agency authority; expressed authority, implied authority, and apparent authority. I do not agree with the last of the three, apparent authority.
Apparent authority refers to a situation where a reasonable person would understand that an agent had authority to act. Another word the principal is bound by the agent’s actions, even if the agent had no actual authority. For the principal to be bound there must be some act or some knowing omission on the part of the principal. However if the agent acts in the presence of the principal and the principal does not say anything to the third party to correct the agent, the principal is bound by the agreement made between the third party and the agent.
An example of this would be, if I owned a clothing store and my friend, Alisha, walked in and I told her I was busy at the moment, she could have a seat behind the counter and I would be with her as soon as I finished with my customer. Alisha heard my business phone ringing and took it upon herself to answer the phone. When doing so she offered the customer a deal of a life time buy two shirts get ten shirts free. Even though I did not give Alisha the authority to answer my business phone nor did I give her authority to give such a deal to a customer, the customer has no idea of this, which therefore would give Alisha