The Nature of Agency
The nature of Agency
Contact creation and management is a crucial process of any type of business that should well defined and documented. Proper contract management, along with a strong ERM (Enterprise risk monument) system will mitigate risks involved when two parties enter into a contractual agreement (Cheeseman, 2010). The purpose of this document is to provide readers with a detailed analysis of the legal situation presented in the University of Phoenix – Business Law/53, week four video titled, “The Nature of Agency”. A brief background will be provided, describing a series of events that led to misunderstood agreement, a disagreement, an argument, and eventually a legal situation between the two agencies: Quick Takes Video, a video editing company; and Non-linear Pro, a software and video editing equipment leasing company. The analysis will be based on the facts presented in the background description, the issues that lead to the law suit, the rules of law that apply, and the conclusion of the analysis, as it relates to contract creation and management, and ERM, or lack thereof.
The Background (Facts)
The facts of this situation consist of Quick Takes Video making a deal with Non-Linear Pro. Quick Takes’ management was under the impression that they were using leased equipment on a trial basis. However, Non-Linear Pro’s view was that the other company entered into a lease agreement. The Quick Takes manager explained that Janet, his employee, “would work out the details.” After receiving the package and using it for a few weeks, Quick Takes was not happy the equipment, because it did not perform as advertised. When a bill was presented to Quick Takes, management was surprised and opted not to pay the bill, because they never agreed to lease the equipment. Non-Linear Pro mentioned they had a signed lease agreement and decided to file a suit against Non-Linear Pro for not paying. One of Quick Takes’...