- 10 Marks
BCL – July 2023 – L1 – Q2b – Agency
Discuss the concept of actual authority in an agency relationship and determine liability for the cost of goods.
Question
Kwei Aglote is an agent of Batis Brown, the principal. Kwei Aglote has actual authority to contract for his principal Batis Brown on specific items. Kwei Aglote enters into contractual relations with Ogyeene Baby for the supply of cassava flour (kokonte powder) worth GH¢20,000. Aglote disclosed his agency relationship with Batis Brown to Ogyeene Baby. The principal has failed to pay for the cost of the goods supplied. Despite the explanation, Ogyeene Baby says he knows no one else but Kwei Aglote who must pay for the cost of the goods.
Required:
i) Explain actual authority under the agency relationship. (5 marks)
ii) In the above scenario, who bears liability for the cost of the goods? (5 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Actual Authority, Agency, Principal Liability
- Level: Level 1
- Topic: Agency Law
- Series: JULY 2023
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