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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 7 years ago by MikeLittle.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • November 22, 2017 at 12:07 pm #417392
    adarsh1997
    Participant
    • Topics: 646
    • Replies: 282
    • ☆☆☆☆

    An agency by estoppel arises from the action of which of the following parties?
    A The principal only
    B The agent only
    C Both the principal and the agent

    1. The answer is C.
    – In the examiner’s report it says: “The correct answer is option C, as the agent has to undertake some action and the principal has to approve or allow that action.”

    – What will happen when the principal holds out a person to be their agent but the agent has not yet undertake some action?

    November 22, 2017 at 12:53 pm #417398
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    Then there’s no liability! No liability falls on the principal until the agent commits some action apparently on behalf of the principal

    It’s like asking me if I am liable for driving my car recklessly … when I don’t even drive a car

    !

    OK?

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

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