Commercial Law - Research Paper Example

On the other hand, there are cases in United Kingdom and Singapore that similarly dealt with your situation. In view to this, the following discussion will deal on these cases, and ostensible authority in the United Kingdom to further your knowledge on your current situation. Facts As an overview, Cheng-Han Tan cited that the agency relationship occurs when a principal allows an agent to represent itself, wherein the agent also agrees with the representation. There is a mutual agreement between the principal and the agent in the agency relationship, even in instances that either one disclaims or does not pronounce the mutual agreement.

Also, the agent can be given authority, which is granted by the principal to enter within a contract with a third party. However, if the contract entered by the agent with the third party is not authorised by the principal, then the principal is not committed to the contract. Moreover, ostensible authority appears only in specific circumstances. Ostensible authority comes in view when the agent surpasses the authority given by the principal, when the agent is no longer recognised as an agent of the principal, or when a person, never been recognised as the agent is then permitted to be the agent.

1 In addition, Steyn LJ cited that ostensible authority or apparent authority is used in two main parts. . However, in this case, Mr Pierce Hawthorne is not recognised as an agent but only as a Finance Manager of Blogon Breweries Pty Ltd. In this manner, we can cite the similarities of Mr Hawthorne to Chia in the Skandinaviska Enskilda Banken AB (Publ), Singapore Branch v Asia Pacific Breweries (Singapore) Pte Ltd and another appeal [2011] SGCA 22, where Chia was also a Finance Manager which has lesser authority when compared to the general manager.

Also, Asia Breweries Limited (APBL) was a large corporation which has higher appointed officials. In the current case and the above statement may be supported with Armagas that ‘In the commonly encountered case, the ostensible authority is general in character, arising when the principal has placed the agent in a position, which in the outside world, is generally regarded as carrying authority to enter into transactions of the kind in question.3 In contrary to the First Energy (UK) Ltd v Hungarian International Bank, Ltd [1993] B.C.C.

533 (‘First Energy’), Mr Croft had negotiated and directly discussed with Mr Jamison who was the Senior Manager of Manchester office of HIB. He has ostensible authority because his position allowed him to ‘sanction large credit transactions together with another senior employee. Like many merchant banks and trading banks, HIB drew a distinction between internal authority to sanction a credit transaction and authority to sign a facility letter.’ As a support statement on the status of authority of Mr Hawthorne in the Blogon Breweries Pty Ltd, in the Skandinaviska Enskilda Banken AB (Publ), Singapore Branch v Asia Pacific Breweries (Singapore) Pte Ltd and another appeal [2011] SGCA 22, Chia as the Finance