Quote:
Originally Posted by Craig@SupremePower
Jeff is no longer with SP so we have no real way of knowing what he stated but for future reference guy's try to take the time to see things from both sides.
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Craig,
First, thank you for doing what you are LEGALLY supposed to do.
But what I wanted to get to, Jeff was an agent of your company. Authority is one of two basic types: actual and apparent. Actual authority depends on consent that the principal (That would be Supreme Power) manifests to the agent. It may be either expressed or implied. In either case, such authority is binding and confers upon the agent both the power and the right to create or affect the principal's legal relations with third persons. If you are saying Jeff had no right to offer the full cash refund then he did not have actual authority. But I haven't explained apparent.
Apparent authority is based upon acts or conduct of the principal that leads a third person to believe that the agent, or supposed agent, has actual authority, upon which belief the third person justifiably relies.
Common ways in which apparent authority may arise include the following:
1) When a principal (Supreme Power) appoints an agent to a position in an organization,
third parties may reasonably believe that the agent has the authority to do those acts customary of an agent in such a position.
2) If a principal has given an agent general authority to engage in a transaction, subsequently imposed limitations or restrictions will not affect the agent's apparent authority to engage in that transaction until third parties are notified of the restrictions.
rldzhao, the third party, based off of Jeff's actions, believed that Jeff had the authority to approve a full refund. rldzhao justifiably relied and acted on this belief and sent the part back to Supreme Power. It doesn't matter if Supreme Power never gave Jeff the authority to issue refunds or fired him. As an agent of your company with apparent authority, any contracts (offering the full refund was a contract. There was the offer, acceptance by rldzhao, and his consideration of sending the part back) Jeff entered into must be honored by the principal part, Supreme Power. If rldzhao took you to court you would have lost.