Reference no: EM133855871

Question

Could you redo this paragraph without making reference to the case of Freeman v Buckhurst park authority? While agents have a set of duties to their principals, principals also have responsibilities towards third parties, especially concerning contracts entered through agents. A principal can be bound by an agent's actions if those actions occur within the scope of their actual, implied, or apparent authority. The case of Freeman & Lockyer v Buckhurst Park Properties (Mangal) Ltd illustrates that apparent authority is sufficient to bind a principal if the third party reasonably believes the agent's authority is legitimate. Producers Ltd. introduced Amy as a representative without informing Tim of her limitations, creating apparent authority and hence a binding commitment on their part. They may be liable for breaching the contract Tim believed was validly executed by Amy. Additionally, if a principal fails to clarify the limits of an agent's authority to third parties, they risk being held liable for the agent's actions under that perceived authority. This aspect applies to Tim's situation, where Producers Ltd.'s failure to inform about Amy's constraints creates potential liability.