Question: Hi tutor, I need your help on the question, regarding contract law, duty of agent, breach of duties, Prakash works as an interior design consultant,
Hi tutor,
I need your help on the question, regarding contract law, duty of agent, breach of duties,
Prakash works as an interior design consultant, and he often provides affordable design services to disadvantaged families in the community. As his business is growing, he decided to hire an assistant to help him in his business. Prakash hired Aaron, a fresh graduate from a local arts and design school, partly because Aaron possessed an impressive design portfolio. Given that Prakash trusted Aaron and his capabilities, Prakash allowed Aaron to negotiate and enter into contracts on Prakash's behalf with the clients. However, Prakash informed Aaron that one requirement of the contract is non-negotiable. This requirement is that Aaron must provide a professional three-dimensional ("3D") rendering for each client, regardless of the size of the project. Prakash sees this as a hallmark of his business, which distinguishes him from his competitors.
Although Aaron has been trained to produce 3D renderings, he finds it tedious. On one occasion, for a client named Tricia (who also happened to be Aaron's distant relative), Aaron did not provide a 3D rendering of the design. Tricia also did not require it, and she was satisfied with the other non-3D design plans that Aaron provided. Because Tricia was accommodating in this aspect, Aaron gave Tricia a significant discount on the project price, and he did not inform Prakash about this. To prevent Prakash from finding out about this discount, Aaron asked Tricia to transfer the payment for the project into Aaron's personal bank account. On another occasion, for a client named Eunice, Aaron could not find the time to do the 3D rendering, and hence he asked his friend to do it for him. There were a number of errors in the 3D rendering produced by his friend, but Aaron did not spot them and neither did the client.
Question 1:
Outline the duties of an agent (which are owed to the principal), and analyse whether Aaron has breached these duties in his relationship with Prakash based on the given scenario. And to define the concept of "agency" and identify who is the principal, agent and third party (or parties) in this scenario.
Question 2:
Kindly state in-text citations or references related to the above case study.
Thank you.
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