Tag (SQ): Agency of Necessity

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BCL – L1 – Q38 – Agency

Can Kofi justify ratifying a contract made by his agent beyond authority?

KOFI

Kofi, acting for and on behalf of Mensah, was authorized to purchase Two Thousand Ghana Cedis (GH₵2,000) worth of corn for Adwoa. Kofi bought the corn in Adwoa’s name at Two Thousand Five Hundred Ghana Cedis (GH₵2,500), which was clearly beyond his authority. Mensah was to ratify. Adwoa then failed to take delivery of the corn.

Required:

(a) Explain whether Mensah would be justified in ratifying the contract entered by Kofi and Adwoa.

(b) Explain the concept of “Agency of necessity”.

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