AGENCY HYPOS
In each of these situations, identify the principal, agent and third party (or is claiming to be, since some of these will not have valid agency relationships). Not all have third parties. Then answer the questions and explain your reasoning.
- Can a child disaffirm a contract Joe made with Warner Brothers on his behalf, to play in a movie?
- Anakin (adult) tells Shrek, “sell my laser”. Does Shrek have express actual authority to sell it?
- Al, Steve’s manager, buys supplies from Wal-Mart without permission. Al knows that Steve has paid off the previous Wal-Mart debts that Al has run up. If Al keeps buying from Wal-Mart, is Steve bound to Wal-Mart?
- Kevin gives Ray the power in writing to sell his home and says the power is irrevocable, can Kevin revoke?
- Kevin borrows money from Ray to buy a piece of land in Arlington and tells Ray that he can sell the land if he defaults, can Kevin revoke?
- Bob gives Henry the authority to sell his land, Bob mails a letter revoking Henry’s authority but while letter was in the mail, Henry had already contracted to sell the land. Did Henry have authority to sell the land?
- Jennifer tells Stacie “If you want to buy my ring, see Kelli.” Jennifer has never authorized Kelli to sell the ring. If Stacie contracts with Kelli to buy it, is Jennifer bound?
- Terry tells Patrick that he has the authority to sell Jason’s barn. Based on that information, Patrick signs a contract with Terry to buy Jason’s barn. Is Jason bound to Patrick to give him his Barn?
- Same facts as #8 except…. What if Jason was standing with Terry and Patrick when Terry told Patrick he had authority to sell Jason’s barn, but is not present at the later contractual negotiation and closing. Is Jason bound to Patrick?
10. On October 14, Dan tells Mike he has the authority to sell Jimmy’s car. Based on that information, on October 16, Mike signs a contract with Dan to buy Jimmy’s car for $25,000. On October 20, Mike runs into Jimmy and Mike says, I love your car, I appreciate you selling it to me through Dan. Jimmy says “Cool, Dan always gets me a good deal and good customers for my possessions.” On October 25, Jimmy changes his mind and sues to get his car back. Outcome?
11. Dr. Jackson is a doctor and owns his own practice. Bovell Electronics is a company that produces computer products and machinery and employs 500 people, for which a physical exam is required for them to be eligible to work there, along with follow-up physicals every two years after. Bovell Electronics contracts with Dr. Jackson to provide their employees with physical exams. Jimmy is hired by Bovell pending a physical. Like all new employees, Jimmy goes to Dr. Jackson’s office for his physical. While there, Jimmy is instructed to sit on an office bed, which has a bolt missing, and breaks and he falls to the ground and breaks his arm. Jimmy sues Bovell Electronics? Do you think Bovell is liable? Explain
