Deprived of a Bed Linens Showroom? Here’s Your Cause of Action

 Deprived of a Bed Linens Showroom? Here’s Your Cause of Action


When a person (agent) binds himself to render some service on behalf and with the consent of another (principal) in transacting business with third persons, a contract of agency is created.

The contract of agency may be expressed or implied. Expressed, when the agreement is evidenced by a written agreement; implied when expressed indirectly by conduct or oral statement of exchange LINENS AND HUTCH  of promise.

In a contract of agency, the parties are under obligations to perform certain duties. It is expected of the agent to carry out his responsibilities with utmost diligence, acting exclusively for the benefit of the principal. From time to time, he has to update the principal on all matters concerning the agreement, and complying strictly with the instructions of the principal.

On the other hand, the principal must be supportive of his agent by seeing to it that he is well-compensated, safe and duly indemnified for whatever expenses the agent may have incurred in pursuing the object of the agency contract.

In a case, the agreement entered into between John and Martin is a contract of agency. John is in the business of selling bed ensembles, duvet, comforters, quilts and bed linens online.

He decided to expand his business, finds Louie’s property perfect for a new store location, a showroom for his products. He hired Martin to negotiate and eventually buy the property for him.

Instead, Martin, realizing that the property is an excellent deal bought the property for himself, for his own benefit. John’s objective in contracting the services of Martin was to minimize acquisition cost of the property, a mechanism ordinarily employed by businesses.

Martin did not comply with what is expected of him under the agreement. Is Martin liable for breach of contract? Has John a right to demand conveyance of the property plus damages?



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