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Nature of Agency

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Submitted By clintmiddleton
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The Nature of Agency Issues

Clint Middleton

LAW/531

June 10, 2013

Thane J. Messinger, MBA, JD, ALM

Abstract

This paper will present an analysis of the issues contained in the Nature of Agency video. Quick Takes Video is the defendant in a lawsuit brought on by Non-Linear Pro for breach of contract. Quick Takes Video agreed to a three-month trial of Non-Linear Pro’s editing system that did not meet the expectations of the Quick Takes team or management and did not work how the salesman described it. Hal, the owner of Quick Takes Video returned the system after only one month as it did not perform as guaranteed and therefore did not meet the terms of the lease.
Agency
“The Restatement (Second) of Agency defines agency as a fiduciary relationship ‘which results from the manifestation of consent by one person to another that the other shall act in his behalf and subject to his control, and consent by the other so to act’” (Cheeseman, p. 459, 2010).
The common law theory of one person acting on the behalf of another is represented by the Latin phrase qui facit per alium, facit per se, translated as the one who acts through another, acts in his or her own interests. Contract agency can have multiple players, including the primary, or the person with authority relating to the contract, and agents. Agency can be implied or express. Implied agents draw their powers through implied means. This is usually a power provided through position. This authority is drawn from industry custom, past customer encounters, requirements to perform the agent’s duties, and any factor the court deems necessary. Express agents have their authority directly given to them by the primary and can act on behalf of the employer in the capacity of agent as expressly stated in the agency agreement. “Express agency is the most common form of agency” (Cheeseman, p.

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