Case Analysis : Ford Credit Essay

1208 Words Oct 7th, 2016 5 Pages
Amanda Hannan
1-4 (c). Rabe would seek a remedy at equity since he wants to end the contract, which is a legal action or specific performance.
32–5. A corporation is not considered an agent of another corporation just because a majority of its voting shares is held by the other corporation. There must be elements of an agency relationship established between a parent and subsidiary before an agency relationship can exist. One of the elements establishing an agency relationship is that the purported agent holds the power to alter legal relations between the principal and a third party; which Ford Motor is not a party to the agreements between Ford Credit and its customers and Ford Motor also doesn’t receive any payments under those agreements. Ford Credit is not subject to any agreement with Ford Motor restricting or conditioning its ability to finance the dealers, inventories or the customers, purchases or leases of vehicles. Ford Credit has no power to alter legal relations between Ford Motor Company and third parties. Therefore, Ford Credit does not act as agent for Ford Motor.
32–6. Barr’s argument is not correct. The evidence that Mr. Acree instructed Hall to clear the land by controlled burn is not sufficient enough to establish that there is an actual agency relationship existed between Mr. Acree and Hall. Hall was the property manager and Mr. Acree only observed what happened. “The principal must have the legal capacity to authorize the transaction at the time the…

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