(a) Under the law of agency, an agent is required to act only within the scope of authority given to him by the principal and not to delegate such authority. However, under certain circumstances, the law allows for some exceptions to this rule against delegation of an agent’s authority.
State any three (3) of the exceptions. (3 marks)
(b) In relation to the law of agency, describe what is meant by “apparent authority” and agency by holding out. (5 marks)
(c) State and explain the legal provisions, in which the following types of appointment of an agent may become valid:
(iii) by ratification. (6 marks)
(a) Delegation of agent's duty.
- Where the principal approves to the delegation of authority
- Where it is presumed form the conduct of the parties that the agent shall have the authority to delegate.
- Where customs or practice allows delegation
- Where delegation is necessary to complete the business
- Delegation is purely ministerial/clerical
- In case of an unforeseen emergency/necessity
MIA QE 2013/3 Q2 (a)
MIA QE 2013/9 Q2 (a)
MIA QE 2014/9 Q2 (b)(i) exceptions to ‘delegatus non potest delegare’
(b) See Actual v Apparent Authority here.
2012/3 Q3 (d) distinguish actual and apparent or ostensible authority.
2015/3 Q2 (b) distinguish actual and apparent or ostensible authority.
(c) Agency may arise in the following cases:
- S.139 By Express; or
- S.139 By Implied
- S.149 By Ratification
- S.142 By Necessity
- By Doctrine of estoppel or 'holding out' which is about Apparent or Ostensible Authority.
Refer earlier posts on this subjects:
S.164 follow instruction or in the absence, local practice and custom.
S.165 Reasonable skill and diligent.
S.166 Account keeping.
Similar question was asked in:
Agent's duties to Principal CA50, complete answer.
MIA QE 2008/3 Q3 (a) duties of an agent in an agency relationship.
MIA QE 2010/3 Q3 (a)(i) duties that the law imposes on an agent towards his principal.
MIA QE 2011/3 Q4 (b) 5 of the duties of an agent towards his principal.
MIA QE 2013/9 Q2 (d) 3 of the duties of an agent towards his principal by citing the corresponding statutory provisions.