Nature of Agency Video Option Two

The Nature of Agency Video Option Two
Barbara G
University of Phoenix
Business Law
June 4, 2012

The Nature of Agency Video Option Two
Quick Takes Video is in a contract dispute with Non-Linear Pro because each side has a different understanding of a trial use of editing equipment. Hal Boylston from Quick Takes Video met a representative of Non-Linear Pro at a professional conference. Hal liked what he saw at the conference and invited the representative from Non-Linear Pro to Quick Takes Video. The representative offered equipment, education to Quick Takes Video staff, and support to trial the editing equipment. Hal told the representative from Non-Linear Pro to “work out the details” with Janet and agreed to trial the editing equipment. The agreement was verbal with a handshake. Hal believed the trial was for a month at no cost to Quick Takes Video. Unfortunately, when the equipment was delivered, Janet signed a three-month leasing agreement. Janet believed the paper she signed was a delivery slip, not a leasing agreement.
Several weeks after trialing the equipment, Hal and the editing team at Quick Takes Video decide the editing equipment is not working and returns the equipment. Non-Linear Pro sends a bill to Quick Takes Video for three-month’s lease. Hal decides to reach out to Non-Linear Pro for arbitration and is awaiting a response. Mary is Hal’s partner in Quick Takes Video and has questions related to the signed contract because neither Hal nor Mary signed the lease. She questions whether Janet’s authority to bind Quick Takes Video to the contract.
Principal versus Agent
A principal employs another person to act on his or her behalf. Cheeseman (2010) defines an agent as “a party who agrees to act on behalf of another.” An agency relationship is a contractual bond that involves the agent to act of behalf of the principal to create a legal relationship with a third party. The principal expressly or impliedly authorizes the agent to work...