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This problem is based on the liability of the principal for transactions entered into by the
agent.
As a general rule the principal is liable on contracts entered into by the agent within the
scope of his authority.
In this case it is implicit that Emmah had previously collected monies from Mrs. Cool
having dealt with her on behalf of Mrs. Mutua.
Hence she had authority to accept payment on behalf of Mrs. Mutua.
Since Mrs. Mutua did not notify Mrs. Cool of the dismissal of Emmah as an agent, Mrs.
Cool was discharged on payment to Emmah.
Mrs. Mutua has no actionable claim against Mrs. Cool as payment to the agent discharges the 3rd
party if the agent has authority to accept payment.
maurice.mutuku answered the question on April 25, 2018 at 12:04
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