Negligence in Employment
Beth during her course of employment stopped to deposit her paycheck. During this time she had parked her truck but had not applied the parking breaks. As a result the truck rolled down and damaged a whole foods outlet leading to injuries to people and monetary losses. The issue is if this amounted to negligence.
The tort of Negligence is based on 4 essentials, namely:
- Duty;
- Breach of duty;
- Injury caused by breach of duty;
- Consequent damages.
Beth had a duty to ensure that the parked car did not lead to any damages while left unattended. This duty was breached when she negligently omitted to apply the parking breaks when leaving the car unattended. This breach resulted in injuries of three people and monetary losses for the Whole Foods outlet.
Conclusion
Beth’s act of not applying the parking breaks amounted to negligence and she would be liable to pay damages.
Helena’s contract of agency with Sarah was concluded to the extent of obtaining 3 bids for the repairs. Helena contracted a garage to initiate repairs and the repairs were carried out. These repairs exceeded the quoted $350 and the same was also agreed upon based on the representation that Helen had the authority to authorize the same.
A concluded contract requires the agreement of both parties on the same thing in the same sense. This means that all parties should have a meeting of the minds as far as the subject of the contract is concerned.
Fraudulent Misrepresentation refers to an untrue statement that obtains the other party’s consent to a contract. In case of fraudulent misrepresentation the contract is voidable at the option of the party who has been so represented.
Breach of contract refers to an omission or non-observance of the terms of the contract by either or both parties. Breaches result in damages.
The hiring of the contractor to execute repairs to the motorcycle went beyond the terms of the contract between Helen and Sarah. Thus, Helen was not acting as Sarah’s agent when she authorized the repairs. Thus, this excludes Sarah from being liable to pay the bill.
The contract was based on a fraudulent misrepresentation and thus would be voidable at the option of the garage which executed the repairs. However, the garage had breached its contractual duty to complete the repairs within the quoted amount and thus would be liable to pay damages if it did enforce the contract.
Conclusion
If the garage did choose to enforce the contract, Helen would ideally be liable to pay the bill. However, owing to the breach of contractual terms Helen would be excluded from liability as the contact was not performed and would be entitled to damages for breach of contract.
Fraudulent Misrepresentation in Contracts
Brent after his grandmother’s death removed everything he required from the property and then hired a liquidation company (LC) to sell the house and its remaining contents. The company employed various ways in which the sale was executed (which included the hosting of an auction). Brent subsequently refused to pay the charges for the additional measures employed. The issue here is that if the LC acted as an agent of Brent or an independent contractor.
An independent contractor is different from an agent in various ways. An independent contractor has complete control over the ways in which the work is undertaken. Moreover it is also entitled to engage into further contracts to ensure completion of the work. An agent is the representative of his employer and the course of employment is controlled by the instructions of the employer (principal).
Another important distinction is that independent contractors are business owners themselves (providing the particular service being the business here) and agents are merely employees. Thus, contractors are paid remuneration based on the contract agreed upon while employees are paid salaries based on their stipulated periods of employment.
In the given scenario, Brent had hired the LC to execute sales of the rest of property. Here, he showed no interest in the methods employed for the sale. The LC was charged with all responsibilities related to the sale of the properties. Thus, it may be inferred that they had the independence to employ any means necessary to complete the sale of the remaining properties.
Additionally, the LC would be paid at the end of the sale based on the contractual agreement and this cannot be construed as deriving a salary from Brent. Thus, the LC was not acting as an employee of Brent but merely providing a service to him.
Conclusion
The LC was acting as an independent contractor and had the right to employ any means necessary to provide the service.
Dwight was employed at D-M Inc and was charged with the acquiring a quotation for 1000 reams of paper. Once quoted, he was charged with the responsibility of making such an order. The company supplying the paper (paper, paper, paper! Inc) assumed Dwight personally placed the order and sent it naming him as the ordering entity. The issue here is if Dwight would be personally liable for the purchase amount.
An employee working within the course of employment and instructions of his employer is acting as an agent of the employer. In such a scenario the employer is the principal and the employee is the agent. A principal is liable for the acts of his agents if done within the course of employment.
Breach of Contract and Liability of Agents
Dwight was working in his capacity of an employee of D-M Inc when he was placing the order. Thus this was within the course of employment. Even if paper, paper, paper! Does enforce the contract the principal would be liable to pay the amount.
Conclusion
D-M Inc would be liable to pay the purchase amount as Dwight was acting on their behalf in the entire transaction.
Bill and Ted Company (BTC) is a partnership firm which had entered into a construction contract with ABC corp. The final bill to this contract remained party paid. The issue here is if Bill and Ted (the partners) can be personally sued for the remaining amount.
Separate legal entity is a concept which given a separate legal identity to corporations. This makes the liability of the original owners limited and they cannot be legally pursued for the acts of the corporation. A partnership firm however is not a separate legal entity and its partners are assumed to be responsible for the acts of the firm. Unless it is a limited liability partnership, the partners would be personally liable for the obligations of the firm.
BTC is a partnership firm and is not a corporation. Thus the partners are presumed to be liable for all acts of the firms. The unpaid amount maybe rightfully recovered from the partners Bill and Ted.
Conclusion
Bill and Ted maybe pursued legally before other remedies against BTC are exhausted. In such a situation it would be more prudent for BTC to be incorporated into a company as then the owners cannot be held liable.
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