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agency law

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › agency law

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by AvatarMikeLittle.
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  • August 31, 2017 at 9:34 am #404565
    Avataradarsh1997
    Participant
    • Topics: 646
    • Replies: 282
    • ☆☆☆☆

    Which of the following statements regarding agency law is correct?

    A An agent may not enforce a contract that they helped to form
    B A principal may sue their agent if the third party is in breach of contract
    C A third party and principal do not need be in direct contact for a binding contract between them to be formed.

    1. The answer is C. Could you explain why?
    2. And also why A is not the answer?

    August 31, 2017 at 10:07 am #404596
    AvatarMikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    An agent is acting on behalf of the principal. He enters a contract on behalf of the principal and therefore it’s the principal that holds the rights of enforcement

    That’s the reason why agents exist! If I were located in Greece but wished to deal with customers around the world, do you want me to be constantly traveling to put myself in face to face contact? No! So I employ agents

    OK?

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  • The topic ‘agency law’ is closed to new replies.

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