Aker Essay Example | Topics and Well Written Essays - 500 words - 1

Aker - Essay Example xample in the case of a sales manager, the head department has given the sales manager the authority to sell the products of the company, but then eventually the head department has decided to put an end to the authority that was previously given without giving information to the customers. In this scenario the sales manager still has apparent authority, since the basis of apparent authority is the consumer’s assumption of who has the authority and not the current relationship status of a principal and an agent (Rasmusen, 2004, p. 5). Aker has served a total of 200 clients that is from the start up to his final day at Potters agency. The agency was then abolished at the same year of Akers termination. Since the 200 clients to whom Aker has rendered his services do not have an idea that he and the agency no longer exist, Potter is now burdened with the responsibility to handle future complaints, but that will only happen if Aker continues to do business with the 200 clients despite the fact that he is no longer connected with the agency. Potter stopped from creating any arguments towards any agreements or transactions made by Aker, not unless Potter will inform the clients that Aker no longer has the authority to act in behalf of the agency, and that the agency has already been terminated. The clients (third party) are only allowed to ask Potter (the principal) to compensate for the losses if it was a result of Potters negligence to inform them of Akers (agent) termination. It does not make the agreement in a contract null and void as it only refers to the principal’s responsibility to pay for the damages, but the clients may only claim for damages if there is ratification or when the principal affirms to an agreement that is entered into by one who no longer has the authority to do it, as in the case of Aker (Rasmusen, 2004, p. 22-25). Pete Principal instructs Al Agent, his employee, to repossess some property owned by Ted Turner. Al knows that the