Vega, an employee of Beacon Fun Stuff Pty Ltd knows that her employees Algol and Altair...

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Operations Management

Vega, an employee of Beacon Fun Stuff Pty Ltd knows that heremployees Algol and Altair Rigel are looking to purchase a newtransit van. On her way home one day she spots one parked on theside of the road. The owner, Charon is with the vehicle and hechats with Vega. Vega explains that her work Beacon Fun Stuff PtyLtd is looking for a new van. The owner Charon agrees with Vega tosell the vehicle to Beacon Fun Stuff Pty Ltd for $28 000. He agreesto have it professionally cleaned and new tyres put on and that hewill deliver it to Beacon Fun Stuff Pty Ltd.â€™s business premises inthree daysâ€™ time. Charon does as he said he would and arrives at9am on the appointed day. When he approaches Algol, she tells himshe knows nothing about the agreement to purchase a vehicle formhim. She confirms that Vega is an employee but not an agent for thecompany and that therefore there is no contract. Charon has spent$1500 on new tyres and lost a dayâ€™s work to deliver the vehicle. Heclaims that Vega is an agent and that therefore Altair and Algolare obligated to complete the purchase.
Required:
Advise the parties.

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The agency relationship between an employee and employer is of fiduciary nature where the employee has to work in the interests of employer on its behalf as per authority assigned to him her See Answer

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