Tom is the agent of Jerry. Recently Jerry had instructed Tom to sell only two out...

Tom is the agent of Jerry. Recently Jerry had instructed Tom to sell only two out of the five shop lots he (Jerry) owned in Kota Damansara. Instead Tom sold all five shop lots since he received such a good price for them. When Jerry was told of the deal and the price Tom received, Jerry was very pleased. Explain the following to Jerry.

question:The conditions necessary before ratification is possible; (Use IRAC format to answer )

Solutions

Expert Solution

IRAC stands for

Issue: identify the issue.
Rule: state the rule/law.
Analysis: discuss the law in respect to the facts.
Conclusion: provide your conclusion

ISSUE : Tom is agent of Jerry inspite of clear orders to not to sell the goods he sold without prior approval

RULE : Agency Rules apply in case of commercial agency agreements he law of agency is an area of commercial law dealing with a set of contractual, quasi-contractual and non-contractual fiduciary relationships that involve a person, called the agent, that is authorized to act on behalf of another (called the principal) to create legal relations with a third party.^[1] Succinctly, it may be referred to as the equal relationship between a principal and an agent whereby the principal, expressly or implicitly, authorizes the agent to work under his or her control and on his or her behalf. The agent is, thus, required to negotiate on behalf of the principal or bring him or her and third parties into contractual relationship

ANALYSIS : even though Tom did not follow the order he did that for the sake of business

CONCLUSION : Jerry Ratified the contracts hence there is no problem with the agency rules.

jeff jeffy answered 1 year ago

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