QUESTION 1:MOO, a livestock supplies company, was considering opening an office in Ballarat. Tom is a Business Development Manager for MOO. His name and role is prominently displayed on the company web site as on business cards and stationary. Tom was instructed to visit Ballarat, make enquiries on retail locations available to letand thenreport back to head office with a recommendation. When Tom arrived in Ballarat, he evaluated competitors and available premises. Tom consideredthat the heritage ‘look and feel’ and central location of a particular vacant retail premises (owned by Bob) made it best suited forMOO so he executedin writing a lease arrangement with Bob on behalf of MOO. When the copy of the executed lease arrives via email at MOO headquarters in Perth, MOO refuses to agree to the lease of the premises and so Bob takes legal action against MOO. Identify the legal issues arising in agency from this scenario. (15 marks)
QUESTION 2:Anne and Kevin live together as domestic partners in a de facto relationship. Each week Anne orders and receives a delivery of groceries from the local TPN supermarket where Kevin has a credit account and he regularly pays for the groceries that Anne orders. Although. Kevin has asked Anne not to order expensive or luxury items without Kevin first agreeing, Anne orders a $2,000 high-end kitchen blender from RPG shopwhere Kevin also has a credit account. If Anne had asked about the blender Kevin would never have agreed to its purchase. Prior to the appliance order Anne has never made an order at RPG shop. She tells RPG that she is Kevin’s de facto partner, and asked RPG to put the order on his account. Kevin refuses to pay on the ground that Anne had no authority to commit Kevin’s credit for such an item. Kevin’s exasperation is such that he also refuses to pay for the next delivery of groceries from the TPN supermarket. Consider the likely success of claims brought against Anne or Kevin by: (a) the TPN supermarket, and (b) the RPG shop. (10 marks)
QUESTION 3:Why should the law give legal force to contracts created by agents who have only ostensible or apparent authority? (10 marks)
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