Case 2
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School
Humber College *
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Course
342
Subject
Law
Date
Feb 20, 2024
Type
docx
Pages
2
Uploaded by BarristerTitaniumBat25
James Clubine
Case Study
A famous Jazz Saxophonist asked Shirley Schmidt to act as his agent to purchase a Yanagisawa Solid Silver Tenor Saxophone Model TWO37 for no more than $19,200. Shirley contacted multiple different instrument shops letting them know she was an agent for a famous artist and shopping a specific model. She was offered two different options, the exact model that was asked for, being 12,800$. She was also offered another very similar model, for a much cheaper price of 8189$ all in. Without asking, she purchased the cheaper option and signed the contract with the dealer as the “agent”. The Jazz Saxophonist has refused to accept it, as well as has also refused to pay the instrument dealer for it.
1.
Shirley has gone out of her way to purchase a cheaper model, than the exact one that was agreed upon with the famous Jaxx Saxophonist. He now refuses to pay Shirley, as he asked for a different, specific model. In the above scenario, the Jazz Saxophonist likely would be the one held liable to the instrument dealer because Shirley Schmidt was acting as an agent for the artist as well as made it known to the dealer. This shows that Shirley acted in Jazz's best interest and is a direct example of a disclosed principal; meaning the principal's identity is known by the third party at the time the contract is made by the agent. With this principal disclosed, an agent has zero contractual liability for the negligence of the principal or the third party. In the case that the Saxophonist breaches the contract between himself and the dealer, Shirley can’t be liable for any damages coming from the breach.
2. Shirley has reached out to a very well-established Woodwind Reed dealer. She signed a contract in her name alone for the purchase of 500 VanDoren V16 #3 Tenor Sax Reeds in 10 reeds per box. She did not tell the Woodwind Reed dealer that she was acting as anyone’s agent. When the Reeds arrived, the Saxophonist decided he no longer wanted those reeds and figured a different type would work better with his instrument. He refused to pay for the order that has arrived, and this is an example of an undisclosed principal. This meaning that the principal's identity is totally unknown by the third party,
therefore the third party has zero knowledge that the agent is acting in an agency during the period that the contract is made. Shirley would be the one held liable since the third party is not aware of her acting as the agent. Also, the Jazz Saxophonist could be held liable as well because he did knowingly make Shirley his agent, meaning that he must assume all results after entering the contract. This is only applicable if Shirley was acting inside the guidelines of her authority with the Saxophonists best interest in mind. In the case that Woodwind Reed dealer would force Shirley to pay, then Shirley is entitled to compensation by Jazz. Under the circumstances that Shirley was not acting within the guidelines of her power, then Jazz cannot be held liable whether Jazz was disclosed, partially disclosed, or undisclosed. Overall, the Woodwind Reed dealer can only hold one party liable, Shirley or Jazz. The third party can’t hold them both liable at the same time. 3.
The Jazz Saxophonist has asked Shirley to purchase a specific case as well. Shirley has reached out to an instrument case supplier to purchase a case. She signed a contract in her name alone an MTS Model 7163W Tenor Saxophone Case, which was not the same as the BAM Tenor Sax Trekking Case that the Jazz Saxophonist had told her to buy. When she signed the contract, she told the instrument case supplier that she was acting as someone’s agent but did not disclose the identity of her principal. When the case arrived, the Jazz Saxophonist has recognized it is not the case he wanted and refuses to pay the supplier for the case. He has nonetheless accepted, but not paid for the case. This is an example of a partially disclosed principal. Which means that the principal’s identity is not known by the third party, but the third party knows that the agent is or maybe acting for the principal at the time the contract is made. In most cases, when a principal is partially disclosed, then the agent can also be involved as a party to the contract. That means that Jazz and Shirley could both be held liable to the instrument case supplier.
In conclusion, each scenario could have a different outcome. Since the artist has allowed Shirley to act as an agent, now he has taken on liability and responsibility. Weather Shirley has signed under who’s name, and made who aware of each deal, is the significant factor in which will decide each case.
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