Contract Creation and Management Assignment

Contract Creation and Management Assignment

This paper will analyze the related legal principles presented in The Nature of Agency video that deals with the nature of agency within a small business. The analysis will also include any issues and solutions that are presented in The Nature of Agency video.

In this scenario a company called Non-Linear Pro has filed a lawsuit against Quick Takes Video to collect money it claims is owed on a lease for video editing equipment. Janet the department secretary signed for the video editing equipment when it was delivered. Janet was required to sign for the equipment. Janet was not informed that the document she was signing was a 3 month lease contract for the video equipment. Janet thought the document was a delivery confirmation receipt. The contract Janet signed is an agreement with Non-Linear Pro for the video editing equipment. This contract will be enforced by a court of law if Non-Linear Pro and Quick Takes Video cannot resolve the situation. The contract that was signed by Janet is a legally enforceable contract if one of the parties fails to do what was promised. In this scenario, Quick Takes Video sold video editing equipment that was falsely advertised to Non-Linear Pro. The equipment did not meet the customers’ expectations and did not perform as efficiently as it was promised. Non-Linear Pro should be held responsible for the video editing equipment since it failed to perform as promised.

Quick Takes Video intended to use the video editing equipment on a trial basis. The video equipment that was purchased has not functioned as promised. There have been several problems with the video editing equipment. The salesman told Quick Takes Video employees that this equipment would be twice as fast as their other video editing equipment methods. The Quick Takes Video employees are unsatisfied with the performance expectations for this product. Therefore Quick Takes Video decided not to invest in the video equipment for the company and return the product without payment. The owners of Quick Takes Video do not want to pay Non-Linear Pro because they did not physically sign the contract because they were out of town. Janet signed the documents on their behalf. Although the managers did not give Janet the permission to sign for the video editing equipment, they have given her the implied authority to do this because she is the one who is in charge of all the administrative tasks in the office. Although, Janet has legally made