Legal Question in Business Law in California
Authorized Agent Agreement Made and 'Original' Agreement Changes
An agreement was made with aa person acting as an agent for the primary party. The situation is regarding a car accident and the cost to repair a damaged vehicle. 'Original' agreement was that 3 estimates are to be provided and averaged out so that a fair price will be agreed to less the amount already owed by authorized agent to person who caused accident. 'Altered' agreement was made by primary party who indicated that authorized agent could not make that agreement because title of vehicle not in her name though he brought ''her'' car. Details of 'altered' agreement were 3 estimates are to be provided and averaged out so that a fair price will be agreed to.
My question is, does the 'original' agreement preside over the 'altered' agreement?
And if parties attempting to collect act under false pretences (ie. body shop seeking collections) to expedite the collection process. How should one proceed?
2 Answers from Attorneys
Re: Authorized Agent Agreement Made and 'Original' Agreement Changes
You say you were negotiating with an agent, but what makes you believe this is so? If the owner didn't tell you she was his agent and didn't cause you to believe -- whether through action or inaction -- that she was, then you can't hold him responsible for what she promised.
Re: Authorized Agent Agreement Made and 'Original' Agreement Changes
An agent's authority to make deals on behalf of the principal is as great as the authority actually given to the agent OR what the third party reasonably believes the agent to have. For example, if you give your agent authority to settle for up to $10,000 and identify the agent to the third party as "authorized to settle," but the agent settles for $11,000, you are probably bound to the third party for the $11,000 settlement. However, since the agent exceeded her authority, you can sue the agent for the extra $1,000.
Further, an agent would be liable to her principal for any losses resulting from the agent's unauthorized alteration of a written agency agreement or the like.
In your situation, the facts as stated are a bit nebulous, and it's hard for the reader to tell how many parties are described, and what your role is, but hopefully applying these general principles of the law of agency will help you figure out what the principal now owes to the claimant and/or the owner of the auto, and whether the agent has any liability to her principal for mishandling the agency relationship.
If this doesn't help, please feel free to contact me with more specific facts.
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