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Posted Feb 7th, 2012
Can a person act to prevent loss to another without their permission to preserve their right of
redress due to time limits stated in a contract?

Additional Details:
If I am aware that John is the rightful holder of an entitlement to a cash award and the time limit
for submitting such a claim is rapidly approaching, and I am unaware whether John knows that he is
so entitled, or that he knows that the time limit for making his claim for the award is imminent,
can I act on this knowledge and make the claim on his behalf in order to preserve his interest
without his permission if I am unable to contact him? Additional information If the answer is
no, would my intervention be looked at more favorably by the courts if we (John and myself) belonged
to a class of persons who were issued the offer of the cash award for performing certain tasks,
since I would then be a member of a group that would have been materially affected?
Legal Topic Area: Business Litigation in NY

This is an interesting question and, because of the highly theoretical way in which it is framed, difficult to answer. As a general matter, which rights are personal to the holder of an "entitlement," a stranger to the relationship between the "entitlor" and "entitlee" has no right to exercise the latter's rights, and the "entitlor" could probably refuse to recognize the exercise of those rights. Of course, a possible workaround is for you to hold yourself out as "John's" agent. Under the law of agency, if John later ratifies your acts, then the other party may be bound, but you could be in trouble if John is unavailable or refuses to ratify.

If I understand the second branch of your question correctly, you suggest that, since you and John have a common claim, you might have heightened standing to exercise John's rights on his behalf. I can think of no legal reason why this theory might be supported.

As with all other matters in this forum, this is not legal advice, and you should consult an attorney regarding your rights and duties.


Answered on Feb 8th, 2012 at 7:20am