A key issue in the law of agency is the authority of the


Agency

A key issue in the law of agency is the authority of the agent. In order to bind the principle by the actions of the agent, the agent must have been acting within some level of authority. The authority of the agent comprises: • Express actual authority • Implied actual authority • Ostensible authority Youhave a small problem scenario, but this time dealing with agency. The same instructions apply, addressing the research question and methodology. You are simply adapting the requirements to address this new research problem.

Scenario

Tina and Susie formed a company to acquire and develop land. The board of directors comprised Tina and Susie, and a nominee of each. The development of the land was left to Tina who, with the knowledge of the Board of Directors, acted as Managing Director, although she had never been formally appointed to the position. Tina employed a firm of architects to design plans for the land. They issued a bill to the company but this remained unpaid. Later the architects sued the company for payment of their fees for work they have done.

Assessment tasks

Is the company liable for the architect’s fees? In addressing this question identify theresearch question, explain the relevant law succinctly relating to the research question and then discuss your research methodology, and finally provide an answer to the question.

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Financial Management: A key issue in the law of agency is the authority of the
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