What is the difference between the actual and apparent authority of the agent?
law
Description
Questions
1. What is the difference between the
actual and apparent authority of the agent?
2. What is the difference between
agency by estoppel and agency by ratification? Provide an example.
3. Ty Sharim has been employed as an
agent for Farley’s Game and Fishing Lodge Inc. for the past 10 years. Farley’s runs an exclusive hunting and
fishing camp in northern Ontario. Ty’s
contractual duties include advertising the camp and soliciting customers at
fish and gun shows and conventions in North America and elsewhere. One weekend while on a fishing trip with his
family, Ty came across a small fishing camp that was for sale. As Ty has always dreamed of owning and
operating his own business, he is thinking of putting in an offer to purchase
the camp. Can Ty put in an offer to
purchase the camp, or must he inform Farley’s of the camp. Thoroughly explain your answer.
4. Clayton began working for Sleep Eze, located in
Newmarket, Ontario, in 1980 as a customer service manager. In 1995, Sleep Eze had Clayton and all other
salespeople enter into a series of one-year agreements that stated that they
could be terminated on 60 day’s notice.
Three years later, in 1998, the company insisted that Clayton
incorporate, and from that point on, the agreements were between Sleep Eze and
Clayton’s incorporation. The agreements
defined Clayton, and later his corporation as an “independent marketing
consultant” and expressly stated that the relationship was not an employment relationship,
but rather an independent contractor – principal relationship. Clayton paid for his own office space and
remitted his own income taxes and workers’ compensation premiums. At the same time, Sleep-Eze set prices, territory, and promotional methods
and Clayton was limited to servicing Sleep-Eze exclusively. In 2003, Sleep-Eze terminated the agreement
with 60 days’ notice. Clayton sued for
wrongful dismissal damages, alleging that he was an employee.
i. What arguments could Clayton make to support his
position that he was an employee?
ii. What arguments could Sleep Eze make to support
its position that Clayton was an independent contractor?
iii. Which side do you think would be successful? Explain why.
