Dennegar Liability
Published on Feb 04, 2023
No Description
MORE DECKS TO EXPLORE
PRESENTATION OUTLINE
Dennegar Liability
BY JARED VINES
Greetings Professor and colleagues. As you all know, I am Jared Vines. During this presentation, we will be discussing the Dennegar Liability case with a focus to discover under what theory Dennegar could be found liable.
Photo by Brett Jordan
Agenda
- Case Overview
- Relationship between Dennegar and Knutson
- Contract Liability
- Agency Law
- Summary
- References
These are the topics to be discussed on the agenda for today.
We will start off with an introduction to the case.
Then we will examine the relationship between the parties.
We will then dive into contract liability.
Which will be followed by agency law.
Lastly, we will conclude with a summary followed by references.
We will start off with an introduction to the case.
Then we will examine the relationship between the parties.
We will then dive into contract liability.
Which will be followed by agency law.
Lastly, we will conclude with a summary followed by references.
Photo by Mikhail Pavstyuk
Case Overview
- New Century Fin. v. Dennegar took place in New Jersey in 2007
- 1999-2003, Dennegar allowed Knutson to handle financial affairs
- 2003, Knutson passed away, Dennegar discovers debt
- Dennegar is liable for charges as he was the cardholder
The case of New Century Fin. v. Dennegar took place in New Jersey in 2007. In 2001, AT&T Universal issued a credit card in the name of the defendant, Lee Dennegar. Monthly statements for the credit card were sent to Dennegar’s home. Dennegar and his friend Mark Knutson lived together in Dennegar’s home. Dennegar had been hospitalized for a nervous breakdown and assigned Knutson to handle all the financial affairs and general office functions concerned with maintaining the household. Knutson passed away in 2003, shortly after his death, Dennegar learned Knutson had incurred debts in Dennegar’s name. Therefore, holding Dennegar liable for all the charges as he was the cardholder. The total owed in question of $14,752.93 was eventually assigned to the plaintiff, New Century Financial Services, Inc. for collection.
Photo by Nathan Anderson
Relationship
- Knutson legal representative of financial affairs of Dennegar
- Dennegar ultimately responsible for all finances
- Dennegar put Knutson in a position to abuse his authority
The relationship between Dennegar and Knutson aided both parties. Dennegar had the funds and allowed Knutson to take care of him, live in the house and handle the finances.
Dennegar stated in the court he allowed Knutson to handle all of the household’s financial affairs. Thus, Dennegar legally put himself at substantial risk and exposure (Scordtato, 2004)
In granting Knutson free reign of the finances, Dennegar permitted him to abuse his authority and leaving Dennegar responsible.
Dennegar stated in the court he allowed Knutson to handle all of the household’s financial affairs. Thus, Dennegar legally put himself at substantial risk and exposure (Scordtato, 2004)
In granting Knutson free reign of the finances, Dennegar permitted him to abuse his authority and leaving Dennegar responsible.
Photo by Ciccio Pizzettaro
Contract Liability
- Contract- legally enforceable set of promises
- Basic elements of a contract: valid offer and acceptance; consideration; capacity; and legality
- Dennegar both expressly and implied the contract of his authority to Knutson to make financial decisions
- Dennegar ultimately responsible through the express contract with Knutson
Contracts are legally enforceable set of promises. (Mayer et al, 2017) Between Dennegar and Knutson, the basic elements of a contract which are a valid offer and acceptance; consideration; capacity; and legality were present. (Cornell, 2023)
Denneagar allowed Knutson to make all financial decisions both in the form of express and implied contracts.
Therefore, Dennegar is ultimately responsible for the debt through the express (oral) contract with Knutson.
Denneagar allowed Knutson to make all financial decisions both in the form of express and implied contracts.
Therefore, Dennegar is ultimately responsible for the debt through the express (oral) contract with Knutson.
Photo by Sebastian Herrmann
Agency Law
- Relationship between principal and agent
- Express authority, Dennegar gave Knutson oral consent
- Apparent authority
- Principal held liable for agent’s actions within the scope of the apparent authority
An agent acts in the name or on behalf of the principal after being given the authority to do so. (Mayer et al, 2017)
There are three types of authority, implied, express, and apparent authority. All of which are legally binding to the principle.
The relationship between the principal, Dennegar and his agent, Knutson was conjured by the express authority that Dennegar gave Knutson verbally over the course of several years.
Apparent authority is the power of an agent to act on behalf of a principal, even though not expressly or implied. (Cornell LII, 2022) With this, we can in addition to express authority, Dennegar also gave apparent authority to Knutson (agent) and the principal (Dennegar) is still liable for the actions of the agent.
There are three types of authority, implied, express, and apparent authority. All of which are legally binding to the principle.
The relationship between the principal, Dennegar and his agent, Knutson was conjured by the express authority that Dennegar gave Knutson verbally over the course of several years.
Apparent authority is the power of an agent to act on behalf of a principal, even though not expressly or implied. (Cornell LII, 2022) With this, we can in addition to express authority, Dennegar also gave apparent authority to Knutson (agent) and the principal (Dennegar) is still liable for the actions of the agent.
Photo by freexe
Summary
- Dennegar should be held liable for the financial debt that Knutson left
- Terms of the relationship
- An express contract was created
- There was express authority through the principal and the agent
In summary, due to the express and apparent authority that Dennegar authorized Knutson as his agent, Dennegar is liable for the financial indebtedness that Knutson incurred, whether knowingly or not before Knutson passed.
The relationship and express (oral) contract were valid. Which created the express authority of Knutson to act as Dennegar’s agent. Therefore, the principle, Dennegar is liable for his agent’s actions.
The relationship and express (oral) contract were valid. Which created the express authority of Knutson to act as Dennegar’s agent. Therefore, the principle, Dennegar is liable for his agent’s actions.
Photo by Ruthson Zimmerman
References
- Cornell Law School. (2022, June). Apparent authority. Legal Information Institute. Retrieved February 4, 2023, from https://www.law.cornell.edu/wex/apparent_authority
- Cornell Law School. (2022, July). Contract. Legal Information Institute. Retrieved February 4, 2023, from https://www.law.cornell.edu/wex/contract
- FISHER, J.A.D. (n.d.). NEW CENTURY FINANCIAL SERVICES INC v. DENNEGAR. Retrieved from http://caselaw.findlaw.com/nj-superior-court-appellate-division/1263011.htm...
- Scordato, M. R. (2004). Evidentiary Surrogacy and Risk Allocation: Understanding Imputed Knowledge and Notice in Modern Agency Law. Fordham Journal of Corporate & Financial Law, 10(1), 129–166. Retrieved February 4, 2023, from https://search.ebscohost.com/login.aspx?direct=true&AuthType=sso&db=bsu&AN=... 98365&site=eds-live
- Staff, E. (2020, December 20). Express Authority (best definition: All you need to know). Incorporated.Zone. Retrieved February 4, 2023, from https://incorporated.zone/express-authority/
- Mayer, D., Warner, D., Siedel, G., Lieberman, J., K. (2017, March). Business Law and the Legal Environment, v. 2.0. Flat World knowledge.
References
Cornell Law School. (2022, June). Apparent authority. Legal Information Institute. Retrieved February 4, 2023, from https://www.law.cornell.edu/wex/apparent_authority
Cornell Law School. (2022, July). Contract. Legal Information Institute. Retrieved February 4, 2023, from https://www.law.cornell.edu/wex/contract
FISHER, J.A.D. (n.d.). NEW CENTURY FINANCIAL SERVICES INC v. DENNEGAR. Retrieved from http://caselaw.findlaw.com/nj-superior-court-appellate-division/1263011.htm...
Scordato, M. R. (2004). Evidentiary Surrogacy and Risk Allocation: Understanding Imputed Knowledge and Notice in Modern Agency Law. Fordham Journal of Corporate & Financial Law, 10(1), 129–166. Retrieved February 4, 2023, from https://search.ebscohost.com/login.aspx?direct=true&AuthType=sso&db=bsu&AN=... 98365&site=eds-live
Staff, E. (2020, December 20). Express Authority (best definition: All you need to know). Incorporated.Zone. Retrieved February 4, 2023, from https://incorporated.zone/express-authority/
Mayer, D., Warner, D., Siedel, G., Lieberman, J., K. (2017, March). Business Law and the Legal Environment, v. 2.0. Flat World knowledge.
Cornell Law School. (2022, June). Apparent authority. Legal Information Institute. Retrieved February 4, 2023, from https://www.law.cornell.edu/wex/apparent_authority
Cornell Law School. (2022, July). Contract. Legal Information Institute. Retrieved February 4, 2023, from https://www.law.cornell.edu/wex/contract
FISHER, J.A.D. (n.d.). NEW CENTURY FINANCIAL SERVICES INC v. DENNEGAR. Retrieved from http://caselaw.findlaw.com/nj-superior-court-appellate-division/1263011.htm...
Scordato, M. R. (2004). Evidentiary Surrogacy and Risk Allocation: Understanding Imputed Knowledge and Notice in Modern Agency Law. Fordham Journal of Corporate & Financial Law, 10(1), 129–166. Retrieved February 4, 2023, from https://search.ebscohost.com/login.aspx?direct=true&AuthType=sso&db=bsu&AN=... 98365&site=eds-live
Staff, E. (2020, December 20). Express Authority (best definition: All you need to know). Incorporated.Zone. Retrieved February 4, 2023, from https://incorporated.zone/express-authority/
Mayer, D., Warner, D., Siedel, G., Lieberman, J., K. (2017, March). Business Law and the Legal Environment, v. 2.0. Flat World knowledge.
