Commercial Law

Law of Agency

End Module Project (EMP)

(Problem-Based Questions) – (Total: 3900 words)
Please answer the following questionsuse at least 25 case law and OSCOLA references for citing law sources. Please also include the following:

1. Lexis/Nexis PSL and Practical Law must be incorporated into the EMA.
2. Must incorporate academic law journal articles into the EMA.
3. More cases are needed, especially those from the 21st century.
4. Overall Introduction and Conclusion.

* Be sure to use a clear IRAC structure and use plenty of case law and legislative provisions to build strong legal arguments.*

Please advise Sam and Kamil

Sam owns a gift shop which sells a range of gifts, cards and jewelry. Sam prides himself on only sourcing and selling handmade items from independent crafts people. He decides to take a two-week trip to France to source some traditional French wood carvings.
He leaves his trusted friend Kamil in charge of the shop. He tells him that he is due to receive three jewelry sets consisting of necklaces, earrings and bracelets in blue, pink and green, from a local jewelry maker Craig, in 7 days (halfway through Sam’s trip), for which he has already paid half the contracted amount, and the second half is due to be paid once he takes delivery of the goods. The overall price agreed was £500. He also advised Kamil that he often has crafts people coming into the shop asking him to sell their goods on their behalf, but Sam does not want Kamil to buy anything to sell in the shop until Sam comes back so he can see them for himself.
Kamil receives a phone call from Craig advising that he is not going to be able to provide the jewelry sets by the date agreed with Sam, and will need another month to finish them. Kamil agrees and confirms that the final £250 will be paid to Craig once he delivers the jewelry sets in one month. Craig thought he was talking to Sam, because Kamil did not explain who he was or that Sam was away.
Whilst in the shop, Kamil also receives a visit from Kim who makes pop up birthday cards. Kamil explains to Kim that he is not the owner of the shop, but is currently looking after it for Sam whilst he is away. Kim wants the shop to sell her cards. She offers Kamil a box of 20 to start with to see how they sell, and agrees she will provide a second box of 50 if they sell well. Kamil really likes the look of the cards and thinks Sam will too as he has known him for so long. He agrees to sell each card for £4.00, with the shop taking 30% of the price, and 70% going to Kim.
When Sam returns from his trip, he is not happy with the actions Kamil has taken. He has already agreed to sell one of the jewelry sets to a buyer for £250 and so the delay will mean he cannot complete this sale. He also does not agree with the contract Kamil has entered into with Kim, because he feels 30% is too low. He normally only agrees to sell if he can take at least 40% of the overall price.
Advise Sam and Kamil.

Question:
(Word Count – 3700 words. State relevant statutes, references such as Lexis/Nexis PSL and Practical Law, academic law journal articles, and include at least 20 case laws; use OSCOLA referencing and based on UK Law only). The above problem-based exercise /question requires critical analysis. Then need to provide a concise and comprehensive answer based on the IRAC rule.

(i) Identify all the possible issues Sam and Kamil should consider.
(ii) Rule – Provide in-depth research on the abovementioned issues.
(iii) Apply the law/rule you discussed above to the facts/ problem presented. Explain the relevant rule/law, statute/ case laws, and reasons, specifically reference them.
(iv) Conclude – Offer a reasoned conclusion and advise Sam and Kamil.

Please also include the following: (200 words)

(v) A short introduction and overall conclusion

Hints:
I recommend that you clarify right at the very beginning of your end-of-module whether you think it’s an informal arrangement—in other words, two friends who have agreed that X will look after Y’s shop—or whether it’s turned into something far more formal. That’s more of a commercial relationship, which would be governed by the regulations.

So the 1st is governed by common law, the second is governed by the regulations, and that’s what I would advise you to do.

But for your end of the module. You’re probably looking at 4 scenario.

Note these kinds of authority: actual, apparent, usual, and ratification authority.

Actual authority – in Freeman and Lockyer. See Lord Justice Diplock stated in authority was that an actual authority is a legal relationship between the principal and agent created by a consensual agreement to which they alone are parties. So it’s it’s simply the fact that they’ve both consented to a certain state of affairs. Okay, so it doesn’t have to be in writing can be verbal, so keep that in mind for your end of module. so actual, very straightforward. You’re looking at what has been agreed, what has been consented to by the parties, either verbally or in writing.

Apparent authority with 3 different requirements.
Try not to be too sort of fixed or or certain in your sort of conclusions. because in a lot of these instances we need more information. So therefore it is worth spending a little bit of time just clarifying this and saying, Look, it’s it’s not always the same, so it can be, it can be specific, it can be general, it can be by way of words or conduct. So, therefore, just be a little bit more sympathetic to the ambiguity of that.

Usual Authority –
Authority by ratification –
Agency of Necessity- has four requirements (don’t need in the end of module)

What I would suggest. You may wish to consider it in the end of module. You don’t need to go into this level of detail, but you certainly do need to sort of highlight the sort of considerations that need to be satisfied in order for ratification to take place and perhaps the most important is the fact that they’re aware of all the material sort of facts, and also whether or not the principle is disclosed or undisclosed.