Question
Anson was recently hired by Global Swim Sales Pte Ltd (GSS), a company that sells swimming accessories. Anson's job responsibility was stated in his appointment
Anson was recently hired by Global Swim Sales Pte Ltd ("GSS"), a company that sells swimming accessories. Anson's job responsibility was stated in his appointment letter as follows:
"You are appointed as an executive and tasked to explore business opportunities in China."
The Managing Director ("MD") of GSS wanted to send Anson on a business trip to China to meet with a potential business partner called Dora. Dora owns a chain of fashion outlets in China and was keen to carry the products of GSS. To facilitate this, GSS issued Anson with a "letter of introduction" using the company's letterhead. This letter describes Anson as the "Director of Sales" and states that he is authorised to represent GSS. The MD explained to Anson that this letter is "for optics only", as business parties in China place a lot of emphasis on job titles. The MD further informed Anson that it is GSS' policy that before agreeing to any business deal in China, Anson must seek the MD's approval first.
When Anson met with Dora in China, Dora was suitably impressed with Anson after reading the letter of introduction and seeing how well Anson carried himself. After negotiating for a while, Dora asked Anson, "Do we have a deal?" In a bid to clinch what he thought was a good deal, Anson replied, "Yes, absolutely!"
- (a)Describe and explain two (2) ways in which the agency relationship between Anson and GSS could have arisen in the above scenario. Support your answer
- with specific examples based on the above scenario.
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