Question

A key issue in the law of agency is the authority of the agent. In order to bind the principle by the actions of the agent, the agent must have been acting within some level of authority. The authority of the agent comprises:

• Express actual authority
• Implied actual authority
• Ostensible authority

You have a small problem scenario, but this time dealing with agency. The same instructions apply, addressing the research question and methodology. You are simply adapting the requirements to address this new research problem.

Scenario

Sambath and vijay formed a company to acquire and develop land. The board of directors comprised Sambath and Vijay, and a nominee of each. The development of the land was left to Sambath who, with the knowledge of the Board of Directors, acted as Managing Director, although he had never been formally appointed to the position. Tina employed a firm of architects to design plans for the land. They issued a bill to the company but this remained unpaid. Later the architects sued the company for payment of their fees for work they have done.

Assessment tasks

Is the company liable for the architect’s fees?

In addressing this question identify the research question, explain the relevant law succinctly relating to the research question and then discuss your research methodology, and finally provide an answer to the question.

Explain in and about 500-1000 words

Answer 1

Agent's authority: The authority of agent in an agency is to act on behalf of the client so that it binds the client with the law. The following are the types of authority of an agent: 1) Express actual authority: The actual express authority is the authority that the client gives to the agent in a contract with him. It may be oral or written agreement between the agent & client. 2) Implied actual authority: It is an authority which is carried on by an agent on behalf of the client for buying and selling, accepting payment, issuing bills or starting a new lease on behalf of the company etc. 3) Ostensible authority: It refers to the relationship between two parties in such a way that one party is acting as an agent for the other party.  

According to the Implied authority explained as above, the company is liable for the architect's fees. Being an employee of the company Tina employed a firm of architects to design plans for the land on behalf of the company.

According to the law related to architect's fee, any service rendered by an architect is payable by the company. The payment structure for the architect is lower in case of new project, commercial work than private work. The architect fees vary between the different projects. It may range from 6% to 15%. It includes the completion of the project, preparing design, cost incurred in making drawings and other related documents, cost of supervision at the time of doing the architect work, amount to be paid to the different consultants appointed by the architect and other compensation and responsibility born by the architect. The work of an architect involves three ways, viz firstly it is designing and planning. Secondly it involves drawing and tendering the work and lastly it involves construction, administration and supervision.

Research methodology: Research refers to a search for knowledge in a scientific and systematic way. There are many kinds of research e.g. historical, qualitative, correlational, experimental, simulation, modeling, logical and argumentational research. Methodology means a scientific discipline which defines the method in a systematic way for investigation. In this methodology the following points are to be remembered: 1) Descriptive research is to be carried out 2) Conceptional analysis relating to the idea on the work carried out is to be applied. 3) Evaluating whether the work is accomplished and the target is achieved.

I have applied the architectural research methods. In this method I have taken the practical view of the client with respect to color, design, landscape architect view etc. In order to make a research effectively, one can follow the following steps: 1) The introduction part of the architect's work plan 2) Gather all the facts relating to the work and understand the best possible way to enhance it. 3) Determine the problem associated with it and also find the desired outcome 4) Go through all the law relating to the architect. 5) Accomplish the work in the best possible way assigned to the architect.