Law case study Essay Example

  • Category:
    Business
  • Document type:
    Essay
  • Level:
    Undergraduate
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    1
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2Law Case Study

Law Case Study

Introduction

Legal liability is a legal term that explains the circumstance of being subject to a legal commitment or duty to pay debts. In business law, one is legally liable when they are financially and legally accountable for the act. Legal liability arises from various areas including contracts, civil actions (torts) and settlements. .mutual agreement is completed out of the court by settlement even if the courts can only be determined by liabilityLegal In this law case study, the legal liability arises from the law of tort. A tort is an action by someone that causes damage or loss to another individual and he who commits the tort is legally liable for such tortuous acts [CITATION Cal08 p 13 l 1033 ]. It is otherwise known as a civil wrong on another individual. Legal harm or loss is not only limited to physical injuries, but also includes emotional and reputational harm.

Law Case Study

In this case study, John, the Chief Clerk of the prestigious law firm Sue, Grabbit & Runne in Canberra City had a range of duties and one, though occasionally, included booking and paying for office functions, such as the annual Christmas party and when special clients were being hosted by the Partners in the firm. John undertook a hotel booking for the Managing Partner. The Managing Partner later on, on her return claimed that she had had food poisoning at the restaurant that John booked. He was subsequently fired and he faces the legal liability for the amounts involved thereof, and damages on the Managing Partner. This happened despite the fact that it was the Managing partner who told him to make inquiries and ensure he gets the best possible deal though John thought this meant that he was supposed to inquire about the cheapest possible price.

Legal Liability of John and Advice

The legal liability that John faces includes the amounts that were incurred and any harm caused on the Managing Partner if she decides to sue John. The law of agency comes into place to identify the legal liability that John faces. The law of agency involves a relationship between the agent in this case John and the principal who is the Managing Partner. The agent is allowed to perform on behalf of the principal and create binding relations with third parties [CITATION Mun10 p 68 l 1033 ]. The principal may give this authority either expressly or implicitly to the agent during the normal course of employment.

The liability of the agent only comes to place when he acts without actual authority from the principal to undertake certain actions. The authority the agent has is apparent authority and he is legally bound to indemnify the principal in situations where the principal suffers any losses due to his actions resulting from the use of actual authority. John decided to assume actual authority after the Managing Partner went off and he subsequently booked the second cheapest restaurant and made full pre-payment using money received on behalf of the company.

My advice to John is that he faces legal liability for assuming actual authority when performing on behalf of the Managing partner that is the sums paid off for the restaurant booking. He may also suffer legal liability for harm caused on the Managing Partner for the food poisoning she claims to have suffered at the restaurant. However, the legal liability for damages caused on the Managing Partner can only be applied if the Managing Partner sues for the tortuous acts she suffered. John may in a court of law use the respondeat superior doctrine as a defense and claiming that he was acting in good faith when he assumed actual authority. The respondeat superior doctrine dictates that the employer is responsible for actions undertaken by employees in the course of employment[CITATION Eme09 p 52 l 1033 ]. In this case, John was undertaking the normal duties when the action took place and he did it in good faith because at the time the tortuous action took place the Managing Partner was not within contact.

References

Caldwell, R, 2008, Guide to the Law of Tort, Brighton: Straightforward Publishing.

Emerson, R. W, 2009, Business Law, New York: Barron’s Educational Series.

Munday, R, 2010, Agency: Law and Principles. Oxford: Oxford University Press.