Commercial Law Case Study

Commercial Law Coursework
Part A
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

In the example case Lass Salt Garvin (3rd Party), a group of lawyers, were aiming to regain fees of £100,000 for acting in connection with the sale of shares from one company to another. Lass Salt Garvin had provided invoices but the fees were not paid for. Pomeroy (Principal), however, claimed that their agent did not have the authority to agree the legal fees. The agent had claimed that the principal had authorised them to agree the fees with the 3rd party and that they did so. It was further claimed that, even if the agent did not have authority to agree the fees, the principals’ subsequent silence and failure to challenge the 3rd parties’ invoices amounted to a ratification of the agreement. The outcome of this case was justified to ratification of the agent’s actions as it was not brought up at such a late