- 6 Marks
Question
The law of agency deals with rules that govern the relationship between commercial agents, their principals, and third parties.
You are required to explain briefly any THREE types of agents.
(Total 6 Marks)
Answer
- General Agent:
A general agent is appointed to carry out a broad range of activities on behalf of the principal, usually in a specific area of business. The authority granted to a general agent is continuous and covers routine transactions. For example, a manager of a store may be a general agent of the business owner. - Special Agent:
A special agent is appointed for a specific purpose or task, and their authority is limited to that particular transaction or activity. Once the task is completed, the special agent’s authority ends. For example, a real estate agent hired to sell a particular property is a special agent. - Del Credere Agent:
A del credere agent acts as both an agent and a guarantor for the principal. In addition to negotiating sales, the del credere agent guarantees that third parties will pay for goods sold. If the third party defaults, the agent is liable to the principal for the unpaid amount.
- Tags: Agency Law, Agents, Principal-Agent Relationship
- Level: Level 1
- Topic: Agency Law
- Series: NOV 2014
- Uploader: Dotse