The Nature of Agency

When entering into a contract both parties need to understand the terms and conditions of the contract. With verbal contract being legal binding contract both parties run the risk of hearing parts of the contract that they want to hear, they may not fully understand what the verbal contract really entails. According to the video, The Nature of Agency (Chesseman, 2010) Janet who is a secretary that signs for shipments signed a three month lease with Non-Linear Pro. The product end up not working correctly and now Non-Linear Pro filed a suit against Quick Takes Video for breaking their three month lease. One of the sales people said how is it that a secretary signed a binding agreement with Non-Linear Pro without getting authorization of the owners. When the sale of the equipment was being made by the owner Hal he informed the salesman of Quick Takes Video that all arrangements can be made with the employee Janet. Once Hal gave the authority to Janet the salesman assumed that Janet was the one who would sign the lease and with Hal having so many years of experience should have not allowed for any assumptions to be made when entering into a contract. The big issue is weather or not Janet is authorized to sign Quick Task Video into a binding contract. In the video Janet does have some authority; she orders supplies for the company and signs for shipment of the supplies when they arrive. She dose not have the authority to sign the company into a binding contract. The owners of Quick Task Video did not give her authorization to sign them into any contracts but when Hal told the salesman from Non-Linear Pro to handle everything with Janet that did give the assumption that she is authorized to sign the company into a binding contract. When the Non-Liner Pro products were delivered Janet should have gotten approval of the owners of the company. Weather or not Janet was considered an acting agent of the company influences weather or not Quick Task Video is in a binding