Coml203 Commercial Law Assessment Answer
Lennox is building a prototype kitset ‘tiny’ house with the intention that he will go into business manufacturing tiny houses. Lennox appoints Lewis to act as his agent to sell the prototype tiny house. He tells Lewis confidentially that he is having some cash flow problems and needs to make a quick sale.
Lennox only receives low offers for the tiny house. Eventually, he has to accept an offer from Tyson, which is only slightly higher than the other offers.
Lennox finds out the reason why he has received such low offers is because Lewis has been telling potential purchasers that Lennox needs to sell the tiny house urgently. One month after the sale to Tyson, Lennox discovers that Tyson bought the tiny house on behalf of a business partnership that Lewis secretly operates with him. The partnership has already on-sold the tiny house for $10,000 more than Tyson paid to Lennox.
REQUIRED:
Advice Lennox on what duties as an agent Lewis has breached and what remedies are available to Lennox.
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