Georgia collects 'Disney" merchandise and appoints Joe as her agent to purchase three framed pictures from another collector, Mickey. Georgia gives Joe a limit of $10,000 to spend, which Joe promptly deposits in his own bank account "to keep it safe until it is needed". Georgia also instructs Joe to keep the purchase confidential. Joe is very pleased and proud of his appointment as Georgia's agent and tells three of his closest friends, but swears them all to secrecy. Two of these friends work in the same industry and immediately tell their employers.

Joe approaches Mickey and introduces himself as Georgia's agent. Following negotiations it is agreed that Mickey will sell the Pictures to Georgia for $12,000. When Georgia is informed of the contract, she refuses to be bound, maintaining that Joe did not have the authority to make it. Mickey disagrees and wants to proceed with the sale. When Joe was inspecting the pictures, he noticed that Mickey also had the original costume used in the 2004 Warner Bros. movie "Batman". Joe makes an agreement with Mickey to sell the costume to Georgia for $15,000.

Can Mickey enforce the contract for the pictures with Georgia? Give reasons.

Identify the two options available to Georgia regarding the contract to purchase the costume from Mickey.

If Georgia does not go ahead with the contract to purchase the costume from Mickey, what are the consequences for Joe?

List the five common law duties of an agent.

 

Describe the ways in which Joe is in breach of his common law duties as an agent listed in Question.

Discuss all of the consequences of each of Joe's breaches of his common law duties as an agent, including any already mentioned.

Answer rating: 100% (QA)

1 Mickey may not be able to enforce the contract for the pictures with Georgia because Joe did not have the authority to enter into the contract on Georgias behalf Georgia had given Joe a limit of 100... View the full answer