Exam 17: Agency and Franchising

Why should an agent representing a principal always make it clear to a third party that the agent is representing a principal,and not acting on the agent's own behalf?

Jack previously transferred a piece of waterfront property next to his home to his daughter Alana.One day a real estate agent knocked on his door and asked whether the property was for sale.Jack told the agent that it was for sale "for the right price".The agent told Jack he had a customer who might be interested in buying it.Jack immediately signed a listing agreement with the agent giving him the authority to sell the property on his behalf.He failed to disclose the fact that he was not the actual owner.Shortly thereafter the agent returned with an offer.Jack countered the offer and the agent returned a short time later to advise that there was a binding deal.Jack subsequently told Alana that he had sold the property on her behalf and made a substantial profit.She told her father that she "did not want to sell" and that she was planning on building a home on the property in the near future.Jack immediately contacted the real estate agent and informed him that he was not the actual owner and that his daughter did not want to sell.In these circumstances,the purchaser's best remedy is

Pursuant to some franchise agreements,a potential source of profit to the franchisor is derived from exclusive supply arrangements.

Give reasons why a company would expand through franchising rather then through the setting up of its own branches.

Zelda is a Hollywood movie star wanting to buy recreational property.She describes her specifications to Craig and asks him to make an offer to purchase if he finds a suitable property.She asks him not to divulge her identity.Craig finds an ideal property and makes a written offer in his own name to purchase the property for $500 000.00.The vendor signs an acceptance.Zelda suffers a financial setback and refuses to go through with the contract.Whom can the vendor sue?

A franchisor guarantees that its franchisee will always succeed.

What does it mean when we say that an agent is the fiduciary of his principal?

In Montreal,Mike represents six different Canadian business firms in the sale and servicing of their products.Mike is

Why is it important that a company advise all of its customers and suppliers that it has fired an employee?

Why is the purchase of a franchise not a guarantee of success for the franchisee?

What documents can an agent who has been granted a power of attorney sign.

How is the scope of an agent's authority to enter into contracts for a principal extended so as to permit the agent to do the job which the principal hired him or her to do?

Is it legally permissible for an agent to work for two principals;such as for both the seller and the buyer in a real estate transaction?

Barney explains to Mrs.Adams that the contract is an option on her land,that he is an agent,and that the principal wants to remain undisclosed at the present time.If Mrs.Adams signs the option agreement,can it be enforced against her even though the principal is not named and the agent fails to sign?

In relation to each of the following statements,identify the way in which the agency relationship has been established. a.X consigned his automobile to Z with instructions to sell same immediately.Z was a mercantile agent.Z used the vehicle as security for a loan from Y,who knew nothing about X or his instructions to Z. b.Z,a common carrier,transported perishable goods for X.The goods started to spoil,and Z was unable to contact X,who had left the country on an extended vacation.Z sold the goods to Y and received a reasonable price with regard to the condition of the goods. c.X executes a power of attorney in favour of Z,authorizing Z to sell specific land described in the power of attorney. d.X,without the authority of Z,sells certain of Z's furniture at a garage sale.Shortly after the sale,Z learns of it and approves of X's actions.

Jonathan is a used car enthusiast.He enters into an agency agreement with Andrea.She owns a used car lot.The agency agreement limits Jonathan's authority to purchase used vehicles for under $25,000 and to ship them by flat bed trailer to Andrea's lot.When passing through Toronto one Saturday morning,Jonathan stops at the auto auction and sees 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 flat bed 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.In these circumstances

If an agent is liable for fraudulent misrepresentation in making a contract,the third party may rescind the contract.And if the agent was acting within his apparent authority,the third party may sue the principal as well as the agent for

A franchise agreement most likely gives the franchisee the right to

Agency by estoppel goes hand in hand with the apparent or ostensible authority of an agent to enter into the contract.

Gene Stone told the Harders that he was an agent for the Trouplow Corp.and was raising money for a local expansion program.He then proceeded to sell them fifteen $1000 12 percent bonds.In truth,the Trouplow Corp.had never heard of Gene Stone,but they did have 12 percent bonds available for local residents to buy.To recover the $15 000 paid,the Harders should sue