Question1

MacDonald Auto Group of Sydney, ON, offered a $100 000 prize as part of its fiftieth anniversary celebrations. The names of those who purchased a car in the previous year were entered into draw with five selected as finalists. One of the five would receive the grand prize and others would receive gift certificates for car detailing.

Kenneth Binge of Muskcoca was one of the five finalists. On the day of the draw, his spouse, Jane Binge, attended on his behalf. Prior to the draw, one of the finalist suggested that they should split the prize so that each would be guaranteed $20,000. All five (including Jane Binge) agreed to this proposal, although Jane later stated that she did so reluctantly. The finalists met with the accountant for the MacDonald Group and each signed a waiver indicating they each represented a named finalist. At this time, the parties again confirmed their agreement to split the prize. The finalist returned to the showroom where the draw took place. Kenneth Binge who was represented by his wife, Jane - was the winner. When the winner did not share the prize, the runners-up claimed a share in the prize.

Question2

Discuss with example the principle of agency law where the scope of an agent's authority to enter into contracts for a principal is extended so as to permit the agent to do the job which the principal hired him or her to do?