Rebecca owned a film studio. She negotiated with Thomas who owned a cinema regar
ID: 1192468 • Letter: R
Question
Rebecca owned a film studio. She negotiated with Thomas who owned a cinema regarding purchase of the rights to show a film for four weeks at pound 25,000. Rebecca said that the film was a real bargain and an extraordinary new visual experience since the film was the only one on the market to use 3D-HD photography; she also thought that the film could be shown on small screens as well as panoramic ones although she had never shown it on small screens herself. She pointed to a report on her desk containing the estimated average takings of the film when shown at the Odeon in Leicester Square. Thomas read the report. It stated that on average the film had made approximately pound 75,000 a week. He thought he might send his accountant around to look at the accounts to verify the report, but decided not to. He was impressed with what Rebecca had said and in any event, he wanted to be the first cinema in his town to show a 3D-HD film.Explanation / Answer
a) Yes, he has a remedy against Rebecca because his accountant was preparing report on her behalf and it was a principal agent relationship and whenever a person acts as an agent of other, the principal remains liable for all acts of the agents. therefore, he can seek remedy from Rebecca.
b) No, Mrs Smith cannot set aside any of the agreeements. had she been illiterate, she could do so on the ground that she was misled. but if one is scared of someone, one should seek help from police not sign the documents. if documents are signed, the contract becomes binding on both the parties.
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