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Task 6 181

5 Anne, a self-employed manager of sporting celebrities, agrees to become the manager of
Paul Putter, a promising professional boxer. Anne is to arrange bouts for Paul and also to
look after his financial affairs. The agreement is for a fixed five-year period, and entitles Anne
to an annual fee and 10 per cent commission on all of Paul’s earnings.
Fifteen months into the agreement, Paul has become increasingly dissatisfied with Anne’s
services and would like to be managed by Alice. Advise Paul on the consequences of his
ending the contract with Anne, and whether or not Anne could prevent him from employing
Alice as his manager.
Explain also how Paul’s withdrawal of consent for Anne to act as his agent would affect
Anne’s ability to make contracts between Paul and third parties.
How would your answer be different if Paul had been a painter, rather than a boxer, and
Anne had been employed to negotiate the sale of his paintings under a contract for an
indefinite period?

6 With reference to decided cases, explain the different ways in which an agent can acquire
authority to bind a principal to a contract with a third party.

Task 6

A friend of yours, who has a business selling and repairing bicycles, is considering getting
another friend to help him with the buying and selling side of the business. Your friend has heard
of agency but has little idea of the law relating to agency. He has asked you to explain the
following matters:

(a) The different types of authority which an agent might have. In particular, your friend wants
to know how these types of authority arise and the consequences of their having arisen.

(b) The difference between disclosed and undisclosed agency, and the effect of the doctrine of
the undisclosed principal.

(c) The rights and duties which arise between principal and agent.

(d) The ways in which agency can be terminated.

Write a brief report, explaining the legal position.

Visit http://www.mylawchamber.co.uk /macintyreessentialsfor:

Access to the accompanying Pearson eText– an eBook

version linked to all of the resources below which you can

personalise with your own notes.

Multiple choice questions, flashcards and practice exam questions, to test

yourself on this chapter.

Use Case Navigatorto read in full some of the key cases referenced in

each chapter.

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