PRESENTATION OUTLINE
Agenda
- Overview
- Agency Law
- Types of Authority
- Dennegar Vs NCFS
- Overall
- Reference
Lee Dennegar and Mark Knutson were two roommates who lived together at Dennegar’s house located in Raritan, New Jersey. Dennegar was held responsible to a balance of $14,752.93 to the New Century Financial Service Inc. This credit card was opened back in February of 2002, with the consent of Dennegar, Knutson was responsible for the household’s finance and all the functions concerning the home, and was also in charge of receiving and opening the mail. Mark Knutson had passed away, leaving an enormous balance on Dennegar’s credit card. This made Dennegar the only responsible party for that balance. Although he was not aware of Knutson’s activities, there was no indications of any suspicious act.
Under what theory could Dennegar be liable for charges ?
The scenario will indicate the connection between the representative and principal. This agent worked by himself on behalf of the principal. In fact, there is dissimilar variety agents like special agent, general agent and a servant agent which are entirely alike but still opposite agents. For instance, a general agent is someone who has the power to do numerous of transactions regarding the home of the principal. Additionally, a special agent is someone assigned to do only transactions assigned to them. As for the servant agent, this is someone being informed on what needs be done and how it needs to be done.
Expresses Authority
Implied Authority
Apparent Authority
There are different kinds of authority. Expressed authority is a kind of authority that has either been declared verbally or in writing by the principal to the agent. For instance, expressed authority is when the agent is provided with authorization by the principal either verbally or in writing. Implied authority is a type of authority that happens when the individual presumes to have permission to create a legally binding agreement on behalf of the principal. Apparent authority is a kind of authority that happens when the individual is believed to have the power when it wouldn’t be expressed or implied.
Dennegar vs NCFS
The principal has given permission to the agent to act on his behalf. This means that Dennegar permitted Mark to be his agent to his finances. This indicated that Dennagar is liable for the balance, as he authorized Mark to take his finances.
Dennegar was held responsible to a balance of $14,752.93 to the New Century Financial Service Inc. Most of the oral contracts within the agency are legally binding. The carelessness of Dennegar on behalf his credit card with having Mark take responsibility of his financial affairs was plenty of evidence for Dennegar to be fully liable for the balance on his credit card. Cardholders are responsible for checking their credit card statements. By doing so, they will become aware of any suspicious activity. Dennegar was left with no escape on the debt even if he was not aware of it.
