Case Study 1

Jonathan was a used-car enthusiast. He entered into an agency agreement with Andrea. She owned a used car lot. The agency agreement limited Jonathan's authority to purchase used vehicles for less than $25 000 and to ship them by flatbed to Andrea's lot. When passing through Toronto one Saturday morning, Jonathan stopped at an auto auction and saw a 1985 Jaguar that he wanted to bid on for Andrea. He was successful and purchased the vehicle for $24 000. However, he had no flatbed trailer and as such decided to drive the vehicle to Andrea's lot in London. He immediately arranged for automobile insurance on her behalf but without her authority. Near Kitchener he was involved in an automobile accident which resulted in the Jaguar being a total write-off. No one was injured. He contacted Andrea and informed her of the situation. She immediately contacted the insurance company to ratify the insurance contract.

Applying the principles of agency law, discuss the legal issues raised in the above situation.

Case Study 2

X Co. owns land all over downtown Toronto. From time to time, X Co. has used John Jones as its agent to sell land that it owns. X Co. hires John and tells him it wants to sell a downtown property located on Front Street. It instructs John to list the property for $1 million, but that it will take $900 000.00. John has a friend, Mary, who is interested in buying the Front Street property, but rather than listing it at $1 million, he simply tells Mary "For $900 000.00 it's yours," and she agrees. John, having effected the sale, now wants to be paid his commission by X Co.

Applying the principles of agency law, discuss the legal issues raised in the above situation.

Case Study 3

Until yesterday, when X Co. fired Henry, Henry was employed as a purchasing representative, and over the time, he worked for X Co., Henry compiled an extensive list of X Co.'s customers. Henry, who is extremely angry over being fired, decides to get back at X Co., so he contacts X Co.'s largest supplier and on behalf of X Co. enters into a contract for the purchase by X Co. of 1 million dollars worth of goods that X Co. really has no need for. In this situation,

Applying the principles of agency law, discuss the legal issues raised in the above situation.