Critical Analysis of the Legality of Agency

Critical Analysis of the Legality of Agency

  • Submitted By: athena6018
  • Date Submitted: 06/06/2010 12:03 AM
  • Category: Business
  • Words: 1803
  • Page: 8
  • Views: 561

Question 1
1.0 Introduction

It is the intention of this essay to critically analyze that the legal of agency. According to the case, it will analyze what duties Stephen breach and what remedies the Country Constructions may have. Secondly, it will analyze why Stephen is entitled to be paid a commission for this sale, when he did not actually sells this house, and why not.

2.0 Issue

This case relate to the agency. The role of agents as fiduciaries breaches the law relating to fiduciaries, and recovery. Stephen is a real estate agent, not an employee. Therefore, he earns his income on commissions, not on salary and commissions. He engaged to sell the houses on behalf of his principal.
In this case, Stephen is an agent in the true legal sense, and hence agency and principle law applies to him. So, there are some issues involved to this case, he sees a great commercial opportunity for himself so he does two things, which are he helps provide finance to a friend to buy several of the houses, they hope to on sell these at a later date and make a large profit which they will split, and Stephen does not tell Country Constructions about his involvement. And the second thing is he advertises the other houses and, in return for a cash payment, tells potential buyers that the other subdivision is not going ahead so these houses are likely to increase greatly in value. These two things are all about that Stephen has breach his duty as fiduciary. Because, he has took the secret commissions.
In the question b, Stephen shows one of the houses to Phillippa but she decides not to buy at that time. Then Country Constructions advertise the houses for sale in the local newspaper, and Phillippa purchases one of the house directly from the Country Constructions. So the issue is that is Stephen entitled to be paid a commission for this sale or not.

3.0 Rule of Law

“An agency relationship is the fiduciary relationship which results from the manifestation of consent by...

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