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Authority

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Abstract There were a few issues that came up in The Nature of Agency video. Quick Takes Video is being sued for breach of contract as a result of them not keeping the three month lease agreement. The owners of the company feel that they should be held responsible for the breach of contract due to the failure of the equipment to perform as had guaranteed. The biggest issue that has come up is Janet signed the lease agreement but she isn't an owner so the owners feel the lease agreement should not be enforceable because Janet was not an owner or was she given permission to sign the lease agreement. Issues It is difficult to determine Janet's actions as being her own, they argue that she was an agent acting on behalf of the owners. It could be argued that Janet had actual authority which means Hal one of the owners, intentionally conferred express and implied powers to the her to act for him. By Janet exercising actual authority, it is as if the Hal is acting, and Hal is bound by the Janet's acts and is liable for them. Janet was given the authority to act in Hals name when he gave her authority to order supplies. When Janet performs duties, such as ordering supplies, it is as if the Hal has done so. Another issue concerning whether Janet had the authority to sign the lease agreement also arises when trying to determine if the lease agreement is enforceable. Janet may have what is called apparent authority, which is when Hal either knowingly or even mistakenly, permits the agent or others to assume that Janet possesses authority to carry out certain actions when such authority does not, in fact, exist. Hal did not directly give Janet the authority but it was implied that Janet had the authority when Hal told the sales person to work out the details with Janet. By having the sales person work the details out with Janet is gives the sales person the impression

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