Jevan is a band manager for the rock band ‘The Thin Heads’. Each month Jevan enters into binding contracts with John for guitar servicing for the band members as well as for others. Jevan has undertaken the function of ‘band manager’ for a number of years and often undertakes matters incidental to the bands needs including but not limited to booking accommodation, organising meals and organising instrument repairs and maintenance. A member of the Thin Heads, Jimbo asks Jevan to organise a service of a highly collectable guitar. Jevan has the work completed by John and the cost of the repair, which necessitated a full rebuild, amounting to $8,800. When Jevan returns the guitar to Jimbo, Jimbo refuses to pay as do the other members of the thin heads. However, after receiving a legal letter of demand from John and through fear of legal action, Jimbo acquiesces and makes payment. Consider all the legal issues and relevant points arising in agency from this scenario. In your response, you must consistently refer to relevant Australian agency case law.
Discuss how apparent authority arises in agency on the basis of third party perceptions. In your response use relevant Australian case authorities to support your discussion
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