After the Sale describes the sale of a sole proprietorship. It asks students to advise the seller on the legal issues that may arise if the seller continues to work for the buyer after the sale, as is common for founders of service businesses. The B case assumes the seller and buyer reached an agreement for the seller to keep working for the buyer, and follows up 18 months later as the seller evaluates new opportunities in light of his legal obligations to the buyer.
The case provides students with the opportunity to apply a core component of agency law to a relatively simple but common business transactional setting. The case extends first year contract law to the important setting of agency, including employment relationships and (as here) consulting services that facilitate business transactions. The material sets up an exploration of how an agency relationship arises, how the agency relationship constrains the agent’s freedom of action, and how contract and agency law interact. The case would be a useful “active learning” component to complement lecture or Socratic discussion of agency law, and as a first pass at the key duty of loyalty that runs throughout Corporations or Business Associations courses.
Agency, Agency Law, Business Contracts, and Mergers & Acquisitions
Geographic: United States
Industry: Services / Specialty Goods
Event Year Begin: 2015
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