Please help with these five things for the case listed below. With the case, I n
ID: 420643 • Letter: P
Question
Please help with these five things for the case listed below. With the case, I need help with five sentences towards the facts, the legal issue in the case with one sentence, rules of law that are up to three sentences, application or rationale, and the conclusion/decision which is one to two sentences. The case is listed after numbers 1-5 to help with the answers.
1. Facts – This should be a short concise statement of the facts which can be from three to five sentences long.
2 .Legal Issue – Usually, this can be a simple one-sentence question.
3. Rules of Law – This is the statement of the law relevant to answering the question posed in the Legal Issue paragraph. No mention of any facts from the case should be in this paragraph. This can be from one to three sentences long.
4. Application or Rationale – This is your persuasive discussion that applies the law from paragraph 3 (Rule of Law) to the Facts in paragraph 1 to support the conclusion you reach in paragraph 5.
5. Conclusion/Decision – This is a one or two sentence statement of your answer to the question posed in paragraph 2.
Agent’s Authority Basic Research L.L.C. advertised its products on television networks owned by Rainbow Media Holdings, Inc. through an ad agency, Icebox Advertising, Inc. As Basic’s agent, Icebox had the express authority to buy ads from Rainbow on Basic’s behalf, but the authority was limited to buying ads with cash in advance. Despite this limit, Rainbow sold ads to Basic through Icebox on credit. Basic paid Icebox for the ads, but Icebox did not pass all of the payments on to Rainbow. Icebox filed for bankruptcy
Explanation / Answer
Authority of agents is based on the principal agent relationship which results upon an agency agreement been entered into. An agency relationship is created through manifestation of consent of a principal party to another party who acts as an agent on the behalf of the principal subject to the terms and conditions mentioned within the agreement providing the principal control over the relationship under 85 by the consent of the agent to act in that capacity. Therefore, an agent is a person who is authorised by the principal to act on his behalf under the principles control.
Basic research LLC is the principal party in the given case and ice box advertising incorporated was the agent. Rainbow media Holdings suit basic research LLC for breach of contract and unjust enrichment due to nonpayment of dues towards advertisements run on the television networks. As basic research LLC had already made all payments with cash in advance to Ice box advertising Incorporated, and had not been granted credit by Rainbow media Holdings incorporated at any time during their contract, it is known that icebox was paying cash in advance for all the advertisement placed. I spoke with held payments to Rainbow and later filed for bankruptcy. The legal issue is weather basic research LLC is liable to Rainbow media Holdings Incorporated for the amount due from Ice box towards advertisements of basic research.
Authority of an agent to enter into a contract on behalf of the principal is limited to authority to make the contract in the usual form with the usual terms and conditions general to the contract and perform other acts which incidental to the contract and are usually performed under similar circumstances. The agent however, does not have authority to perform the contract except performance to transfer or sign it to bring suit upon it or to alter its terms and conditions which may cause the obligations of the principal party to be changed or diminished. Therefore, when Icebox entered into a contract with Rainbow media on behalf of Basic, it was on the terms and conditions of cash payment in advance, for every advertisement which was adhered to by Basic for every advertisement it placed. Rainbow media offered credit to Ice box without informing Basic for verifying that Basic was aware of the modified terms of payment. For Basic to be liable to rainbow actual or apparent authority needs to be established for acceptance of change in terms of payment by Basic which was not available. Hence, loss incurred by Rainbow was due to its own negligence and not in any way caused by breach of contract by Basic.
The law clearly states that "an agent cannot make its principal responsible for the agents actions and less agent is acting pursuant to either actual or Apparent authority". As Basic was making all payments to Ice box through an escrow account for all of the advertisements run on Rainbow's networks it was right in arguing that Icebox did not have authority to incur debt on their behalf, hence, they were not liable for the debt incurred by icebox from Rainbow on behalf of Basic, without their express permission or granting of express authority.