In relation to the Law of Agency, explain circumstances under which an agent may be held personally liable to third parties.

      

In relation to the Law of Agency, explain circumstances under which an agent may
be held personally liable to third parties.

  

Answers


Maurice
(i) If the principal does not exist or has no capacity.

(ii) If he expressly or impliedly personal liability. The third party may when contracting with an
agent, create a condition that the agent should be personally liable on the contract, and if the
agent agrees he will be personally liable for any breach of contract.

(iii) If the custom of that particular trade makes him liable as in the case of del credere agent.

(iv) If he signs a negotiable instrument in his own name without making clear, on the face of the
document that he is signing as an agent.

(v) If he executes a deed in his own name, or while purpoting to act as an agent when he is
actually acting on his own behalf, or if there is no principal in existence.

(vi) If the agent acts for a concealed principal, if he so desires. A concealed of the principal use
the principal if he desires. A concealed principal is one whose existence or identity is not
disclosed by the agent at the time of entering into a contract. In this case, the third party and
the agent become liable to each other on the contract.

(vii) If the agent had exceeded his authority.
maurice.mutuku answered the question on April 26, 2018 at 06:18


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