Independent Contractor Yvonne Sanchez borrowed money from MBank to purchase an automobile. She gave MBank a security interest in the vehicle as collateral to secure the loan. When Sanchez defaulted on the loan, MBank hired El Paso Recovery Service, an independent contractor, to repossess the automobile. The two men from El Paso who were dispatched to Sanchez’s house found the car parked in the driveway and hooked it to a tow truck. Sanchez approached them and demanded that they cease their efforts and leave the premises, but the men nonetheless continued with the repossession. Before the men could tow the automobile into the street, Sanchez jumped into the car, locked the doors, and refused to leave. The men towed the car at a high rate of speed to the repossession yard. They parked the car in the fenced repossession yard, with Sanchez inside, and padlocked the gate. Sanchez was left in the repossession lot with a Doberman Pinscher guard dog loose in the yard. Later, she was rescued by the police. Sanchez filed suit against MBank, alleging that it was liable for the tortious conduct of El Paso. MBank challenged it was not liable because El Paso was an independent contractor. Who wins? MBank El Paso, N.A. v. Sanchez, 836 S.W.2d 151, 1992 Tex. Lexis 97 (Supreme Court of Texas)
Creation Of An Agency
The term contract can be defined as an agreement which is legally binding exists between two parties. This document provides the powers & duties to be performed by both the parties to the contract. An agreement can become a contract only when it satisfies the legal requirements. Hence the parties in this contract can enter into the contract either by themselves or through a third party. The concept of agency arises if the person enters into the contract through a third party. The third party here is called as the agent & the person on whose behalf he acts is known as the principal.
Administrative Agencies
An administrative agency is a government body which is given the authority to supervise and implement certain legislative acts. Apart from the term agency, they are also referred by the names corporations, commissions; departments etc. a group of experts in their respective fields together form the administrative agency. Majority of the administrative agencies that has an impact on day to day activities are independent agencies.
18.6 Independent Contractor Yvonne Sanchez borrowed money from MBank to purchase an automobile. She gave MBank a security interest in the vehicle as collateral to secure the loan. When Sanchez defaulted on the loan, MBank hired El Paso Recovery Service, an independent contractor, to repossess the automobile. The two men from El Paso who were dispatched to Sanchez’s house found the car parked in the driveway and hooked it to a tow truck. Sanchez approached them and demanded that they cease their efforts and leave the premises, but the men nonetheless continued with the repossession. Before the men could tow the automobile into the street, Sanchez jumped into the car, locked the doors, and refused to leave. The men towed the car at a high rate of speed to the repossession yard. They parked the car in the fenced repossession yard, with Sanchez inside, and padlocked the gate. Sanchez was left in the repossession lot with a Doberman Pinscher guard dog loose in the yard. Later, she was rescued by the police. Sanchez filed suit against MBank, alleging that it was liable for the tortious conduct of El Paso. MBank challenged it was not liable because El Paso was an independent contractor. Who wins? MBank El Paso, N.A. v. Sanchez, 836 S.W.2d 151, 1992 Tex. Lexis 97 (Supreme Court of Texas)
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