Yomi, the son of a school proprietor, often visited his father’s office to spend some hours. Although never given authority to do so, he sometimes assisted in accepting payments from and issued receipts to students, and always handed over the money to the Bursar. However, he failed to account for the payment he received from Kola, a student, whom the school eventually declared as still owing. The school proprietor argued that Yomi had no authority to collect money from students on behalf of the school.

(a) Outline the legal positions of Yomi, Kola, and the school. (5 Marks)

(b) Explain the doctrine of binding precedent and state TWO instances when the Court of Appeal will NOT be bound by its own previous decisions. (4 Marks)

(c) Explain the principle of vicarious liability and state TWO relationships upon which it is dependent. (4 Marks)

(d) Define (i) Intestacy and (ii) Trust. (2 Marks)

(a) The issue in this question is the operation of the principle of agency by estoppel. The rule is that agency by estoppel arises when someone by his word or action creates an impression before a third party that a particular person is his agent and the third party relies on that impression, such a person is estopped from denying his supposed agent’s authority because it is inequitable for him to do so. Therefore, Yomi is an agent of the school by estoppel, and the school will be bound by his action as well as estopped from denying the fact of holding him out.

(b) The doctrine (judicial precedent) refers to the fact that within the hierarchical structure of the Nigerian courts, the decision of a higher court will be binding on a lower court. The Court of Appeal could depart from its previous decisions where:
(i) There is a conflict between two previous decisions of the court, in which circumstances the latter court must decide which decision to follow and, as a corollary, which to overrule.
(ii) A previous decision of the Court of Appeal has been overruled, either expressly or implicitly by the Supreme Court.

(c) Vicarious liability means that one person is liable for the torts of another. It should be noted that it is not a tort in its own right. It is in effect a principle which is used to impose strict liability on a person who does not have primary liability, i.e. is not at fault. The relationships that serve as examples include:
(i) Employer/employee relationship.
(ii) Principal/agent relationship.

(d)
(i) Intestacy: This is a situation where a person dies without leaving a will. Accordingly, the properties he leaves behind will devolve upon or pass to those who are entitled by law to inherit them upon his death.
(ii) Trust: This is an arrangement by which property is transferred to one or more persons called trustee(s) to be held for the benefit of some other person(s) called the beneficiaries (i.e. Cestui Qui Trust).

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