Law of Agency – Questions and Answers

Law of Agency

QUESTION 1
April 2024 Question Two A
With respect to law of agency, distinguish between “apparent/ostensible authority” and “presumed authority”. (4 marks)

QUESTION 2
December 2023 Question One B
Summarise FIVE steps an agent could take to protect himself from personal liability in an agency relationship. (5 marks)

QUESTION 3
December 2023 Question Two C
The Court underscored the confidential relationship between the bank and its customers in Tounier v National Provincial and Union Bank of England, Ltd (1923).

(i) With reference to the above statement, explain the confidentiality principle in bank and customer relations.
(2 marks)
ii) Highlight FOUR exceptions to the principle in (c) (i) above. (4 marks)

QUESTION 4
December 2023 Question Two C
Agents must perform an undertaking personally and must not sub delegate.

Highlight SIX exceptions to this principle. (6 marks)

QUESTION 5
August 2023 Question Three D
Highlight SEVEN conditions which must be fulfilled in order for a principal to effectively ratify an act of an agent. (7 marks)

QUESTION 6
April 2023 Question Three C
Describe FIVE specific agents under the Law of Agency. (10 marks)

QUESTION 7
December 2022 Question Four A
Outline FIVE conditions that are necessary for agency by ratification to arise. (5 marks)

QUESTION 8
August 2022 Question Three C
Describe five conditions necessary for the doctrine of estoppel to apply. (5 marks)

QUESTION 9
August 2022 Question Three D
Explain the personal liability of an agent. (5 marks)

QUESTION 10
August 2022 Question Five B
State three conditions which must be satisfied for a commercial agency to arise.
(6 marks)
QUESTION 11
April 2022 Question Six A
Describe six rights of a principal whose agent makes a secret profit or takes a bribe from a third party with whom he contracts on behalf of the principal. (6 marks)

QUESTION 12
December 2021 Question Five B and C
(b) Summarise five conditions necessary for ratification of an agenc (5 marks)
(c) Outline five ways through which an agency might be created. (5 marks)

QUESTION 13
December 2021 Pilot Paper Question Two B
Explain five circumstances when an agent can be held personally liable. (5 marks)

QUESTION 14
May 2021 Question Five C
Summarise six circumstances under which the principal might unilaterally cancel an agency relationship without being liable to the agent for breach of contract. (6 marks)

QUESTION 15
May 2021 Question Seven B
(i) Outline four essential ingredients of the concept of strict liability. (4 marks)
(ii) Highlight three exceptions to the rule of strict liability. (3 marks)

QUESTION 16
November 2020 Question Six A
With specific reference to the law of agency:
(i) Outline four circumstances under which an agent may be held personally liable to third parties. (4 marks)
(ii) Explain four ways in which an agency relationship may terminate. (8 marks)

QUESTION 17
November 2019 Question Six B
Highlight four circumstances in which the principle of “delegate non potest delegare” does not apply in the law of agency. (4 marks)

QUESTION 18
May 2019 Question One B and C
(a) Explain four features necessary for agency of necessity to exist. (4 marks)
(b) Describe three types of authority that an agent has. (6 marks)

QUESTION 19
November 2018 Question Four B
Explain five circumstances under which an agent’s action which was initially unauthorised might be subsequently ratified by his principal so as to become binding.
(10 marks)
QUESTION 20
November 2018 Question Five A
Ukulima Limited created the position of managing director but no one was appointed to the position. Brian Bundi, a director, with the knowledge of the other directors, purported to act as the Managing Director and hired Mjengo Limited to do some work for the company. Mjengo Limited has now demanded for payment for the work done but Ukulima Limited has refused to pay stating that Brian Bundi had no authority to act on the company’s behalf.

Advise Mjengo Limited on the legal position. (8 marks)

QUESTION 21
May 2018 Question Two C
One of the important legal maxims in the application of the law of agency is expressed as: VA delegate cannot further delegate”.

In relation to the above statement, discuss five circumstances under which an agent might appoint a sub-agent. (10 marks)
QUESTION 22
November 2017 Question Two A
With reference to the law of agency:
(i) Distinguish between a “special agent” and a “general agent”. (2 marks)
(ii) Highlight five conditions which must be fulfilled for a principal to effectively ratify the acts of an agent.  (5 marks)
(iii) Outline three obligations of an agent to the principal. (3 marks)

QUESTION 23
May 2017 Question Two B
(i) Explain three conditions that should be fulfilled for agency by necessity to arise.
(6 marks)
(ii) Identify two circumstances when an agency relationship might come to an end by an act of the parties. (6 marks)

QUESTION 24
November 2016 Question Two B
Identify ten fiduciary duties imposed on an agent when acting primarily on behalf of a principal. (10 marks)

QUESTION 25
November 2016 Question Six A
Explain three duties of a bailee in a bailment. (6 marks)

QUESTION 26
May 2016 Question Five C
Describe three conditions necessary for a valid ratification in the law of agency.(6 marks)

QUESTION 27
May 2016 Question Seven C
Describe five remedies of a principal for an agent’s breach of duty. (10 marks)

QUESTION 28
November 2015 Question Two A
Explain five rights of an agent. (10 marks)

QUESTION 29
Pilot paper 2015 Question Two C
State three rights available to a person who agrees to be answerable for the default or miscarriage of another party (6 marks)
QUESTION 30
Pilot paper 2015 Question Five A
(i) Distinguish between “actual authority” and “ostensible authority” of an agent.
(2 marks)
(ii) An agent must not delegate powers that have been delegated to him.
Explain four exceptions to this rule. (4 marks)

QUESTION 31
Pilot paper 2015 Question Seven C
In relation to the law of agency, explain the following:
(i) Del credere agent. (2 marks)
(ii) Factor agent. (2 marks)
(iii) Two circumstances when the principal is not allowed to unilaterally terminate an agency contract. (4 marks)

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