preview

Business Law

Decent Essays

P 205 case 7 Mary McDonald, an 86-year-old woman, was frequently complaining about the high cost of maintenance of her house and high property taxes. She decided to cancel her fire insurance to reduce expenses. Mary’s daughter was aware of her mother’s concern about the property, and she took Mary to the lawyer’s office to sign some papers that would protect her mother. When Mary came to the lawyer’s office, she was advised that the paper she was going to sign was the deed to the property. Mary signed a document. Later on, when the municipal tax bill arrived, Mary McDonald was really surprised to see that the property was in her daughter’s name. The mistake occurred. Mary McDonald entered into an agreement in such a way that the …show more content…

cheque in the amount of $4500 instead of the full $6000. In this case, the agent (Kent) did not disclose the identity of the principal to the third party (Somerset Pet Shops Ltd.), so the agent alone in this case would be liable. The third party may look to the agent for damages. The agent, by the same rule of law, would be entitled to enforce the agreement against the third party if the third party should fail to perform the agreement in accordance with its terms. P 309 case 5 Due to its nature, partnership is generally liable for the acts of the individual partners if committed in the course of the partnership business. However, liabilities of every partner may be regulated by the written agreement signed by partners. If no written agreement is signed by partners, liabilities of the partnership are regulated by the Partnership Act. If one of the partners retires, he or she may not be liable for the future debts of partnership if an official notice of the change is sent to creditors and the public. However, there were no official notice sent by the partners in the case; therefore, Toby may be liable for the debts of partnership. Due to the death of the third partner, partnership may be dissolved. In order to pay off the debts, assets should be sold and partners are free to continue the same kind of business after the dissolution of the

Get Access