- 20 Marks
BCL – Nov 2015 – L1 – Q2 – Agency
Analyze Bertha's liability to Crunch Ltd and Drinkit Ltd due to Eddie's actions as an agent.
Question
Eddie is the manager of A-LIFE shopping mall owned by Bertha. In January he is told by Bertha not to buy biscuit from a new company called Crunch Ltd, because she has heard that their products are of poor quality.
On 18th February, Christa, a representative of Crunch Ltd, visits the A-LIFE shopping mall, and as a result, Eddie orders 10,000 cedis worth of biscuits. Christa is unaware of Bertha’s instructions.
When later in the day Bertha discovers what Eddie has done, they have arguments, and Eddie resigns. The following day Eddie goes to Drinkit Ltd, Bertha’s regular supplier of wine and spirit, and purchases 10 cases of whisky on credit in Bertha’s name. He then absconds with the whisky.
Bertha comes to seek your advice as to her liability to:
a. Crunch Ltd; (10 marks)
b. Drinkit Ltd. (10 marks)
(Total=20 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Agency Law, Contractual Liability, Principal-Agent Relationship
- Level: Level 1
- Topic: Agency Law
- Series: NOV 2015