- 5 Marks
Question
Ozoozo is a cargo driving agent of Oforiwa, a trader. Ozoozo loaded a truck of yam from Kutunada for delivery to Oforiwa in Accra. In the course of the journey and at Butako township, a curfew was imposed as a result of chieftaincy issues in the traditional area. He tried to communicate with Oforiwa but he was unable to do so due to network challenges. Ozoozo found it useful to off-load the cargo of yam and dispose of it by sale. He accounted for the sale but Oforiwa became furious.
Required:
Advise Oforiwa.
Answer
The scenario refers to agency of necessity, which operates under the following conditions:
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Pre-existing Relationship:
- There must be an existing principal-agent relationship between Oforiwa and Ozoozo.
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Emergency Situation:
- A curfew was imposed, making it impossible for Ozoozo to complete the delivery as planned.
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Inability to Contact the Principal:
- Network challenges prevented communication with Oforiwa to obtain instructions.
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Action in the Principal’s Best Interest:
- Ozoozo made a commercial decision to prevent the goods from perishing, which was in Oforiwa’s best interest.
Conclusion:
Ozoozo’s action satisfies the legal requirements for agency of necessity. Oforiwa must accept the sale and the accounted funds as Ozoozo acted lawfully under the circumstances.
- Topic: Agency Law
- Series: Nov 2024
- Uploader: Salamat Hamid