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Nature of Agency

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The Nature of Agency
In the Nature of Agency video several legal issue are presented. The issues revolve around a contract and the legal authority to sign into that contract acting as agent for the owners of the company evolved. The purpose for this paper is to analyze the different forms of agency covered in the video and determine if the employees had the legal authority to sign the company into a binding contract.
Hal and Karen are partners that own Quick Takes Video. They are being sued by Non Linear Pro over a lease for editing equipment that Hal found to be unsatisfactory and returned before a lease expired. Non Liner Pro is seeking to recover monies owed to them for the lease of the equipment. Neither of the partners knew of; or signed the lease. The agreement was signed by Janet an employee of the company. Janet did not know she was signing a lease. It was not presented as a lease and Janet assumed it was a delivery slip.
Quick Takes Video is arguing the nature of the contract because Janet did not know she was signing the contract, it was verbally expressed as a trial offer, and the product did not perform. This was the legal course for the company until Karen brought up the fact that neither she nor Hal had entered into a lease. Janet did not have the authority. This brings up the legal issue of agency. Did Janet have the authority to act as an agent and sign into a lease for the partners? Was she acting as an agent of Hal’s when she signed the lease agreement?
In the text book Business Law: The Ethical, Global, and E-Commerce Environment the authors collaborate and describe the creation of an agency relationship. “An agency is created by the manifested agreement of two parties that one party (the agent) will act for the benefit of the other (the principle) under the principles direction. As the term manifested suggest, the test for an agency’s

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