In this case Maya (agent) is technically in the wrong as she has overturned her authority due to her not being permitted to order very expensive shampoos and shower gels and any orders that are over £150 the agent has to receive permission from Kallessi (principle). However since the principle has paid for the first 2 orders that the agent has made with the new suppliers it is seen as if the principal is ratifying the situation and agreeing on the agents terms. Ratification is when the principal approves of an act of its agent where the agent lacked authority to legally bind the principal. (www.lawofbusiness.com)
I suggest that the agent should have asked the principal if ordering the new products of shampoo was acceptable to do so as it was not a necessity it was a want. Maya may have been inclined to purchase the final box of very expensive shampoo as the principal had not brought up the case to her of purchasing beyond her requirements and authority until a few weeks later. The principal should have introduced the concept of personal bar and to stop wrong doing fast and when it is spotted, not a few weeks later. The 3rd party is taken out of the equation as the principal ratifies the situation. They will not have been aware of the situation as it is a new supplier and will not be wary of the specific restrictions the agent has when buying the shampoo. Only the regular suppliers have this information for the agent not to purchase expensive shampoos.
I would advise the agent to take a course of action within legal parameters. If anything is explained to her by the principal that they are responsible and liable they should clarify that the principal has paid for the first 2 orders and express, wh...
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...flexible and can be less stressful. Upon choosing the course of action you take depends on various aspects including the result you want, how quickly you need to problem to be resolved and how willing the opposite party is to solve the problem. (www.gov.scot) By using ADR you may receive different solutions than from going to court which can be more beneficial in the long run. Specifically for Maya and Kallessi it may change the way in which they behave together to benefit their organisation. It may also encourage an apology from the party that is in the wrong and for the mistake to be corrected in the future. Furthermore, if you are making a small claim in court, you’ll be sent a directions questionnaire which asks if the parties are willing to settle their dispute using ADR before the matter is taken to court. You can only use this is both parties agree. (adrgroup)
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