- 6 Marks
Question
Jaga contracted Tobi, a transporter, to deliver a trailer-load of bagged salt from Lagos to a customer in Abuja. Midway on the journey and in a remote village, it started raining and the salt was melting as the consignment was exposed. In order to prevent total loss of the consignment, Tobi quickly stopped at the nearest market and sold the wet salt to a buyer at half price.
Jaga is annoyed with Tobi and intends to sue the buyer to recover the salt, claiming that Tobi had no authority to act on his behalf.
Required:
Advise Jaga on his intended action against the buyer.
Answer
The legal principle involved is agency of necessity, which arises when a person acts on behalf of and for the benefit of another person in an emergency situation where there is no opportunity to seek the principal’s approval or notify them.
In this case, Tobi’s action of selling the wet bagged salt was done under emergency conditions due to commercial necessity. The following conditions justified his actions:
i. It was a commercial necessity.
ii. It was impossible to communicate with Jaga for further instructions.
iii. Tobi acted in good faith and in the best interest of Jaga.
Jaga is advised not to sue the buyer for the recovery of the salt because Tobi was acting under the principle of agency of necessity and is covered by law in this instance.
- Tags: Agency of Necessity, Principal-Agent Relationship, Sale of Goods
- Level: Level 1
- Topic: Agency Law
- Series: NOV 2022
- Uploader: Theophilus