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Agency Law

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Agency Law

  • This topic has 7 replies, 4 voices, and was last updated 9 years ago by MikeLittle.
Viewing 8 posts - 1 through 8 (of 8 total)
  • Author
    Posts
  • July 13, 2015 at 8:28 pm #260705
    Chloe
    Member
    • Topics: 95
    • Replies: 243
    • ☆☆☆

    What do I need to know about a collateral contract?

    Please can you explain why an agent will not be liable for a contract:

    where the agent acts on his own behalf but does identify that he is an agent

    July 13, 2015 at 9:30 pm #260714
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    Because he’s told the other party that he is an agent!

    Collateral contracts? You don’t need to look them up on Wikipedia if that’s what you’re asking

    July 13, 2015 at 9:57 pm #260726
    Chloe
    Member
    • Topics: 95
    • Replies: 243
    • ☆☆☆

    Does this mean he is able to act on his own behalf? If he is able to act on his own behalf why does he have to make it clear that he is an agent? Is it to make it clear that he is not acting on behalf of a third party in this instance?

    I just noticed it in the study text but if it is not important I have plenty of other things to learn.

    July 14, 2015 at 9:15 am #260744
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    Of course he is able to act on his own behalf! But, if he wishes to act on behalf of a principal and does not want to be held potentially liable, he should identify to the third party that he is acting as an agent

    August 3, 2015 at 10:28 pm #265323
    Aleksandra
    Member
    • Topics: 0
    • Replies: 6
    • ☆

    Andrea worked for lady Gertrude and part of her job was to buy plants, ornaments and furniture for the gardens of her county manor house. When her daughter, Harriet, was about to finish studying at uni, Lady G told Andrea that Harriet would be taking on these responsibilities.
    A few weeks later, Andrea ordered some very expensive roses and marble statues from Lady G main supplier and collected the goods the next day for her own garden. The invoice was delivered to Lady G.

    Q: Weather Lady G is bound to settle the invoice?

    by Kaplan the answer is: yes.

    Please could you explain why?

    August 4, 2015 at 8:15 am #265368
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    Because the termination of the authority had not been notified to the supplier and there was an established history of Andrea buying from that supplier as the authorised agent of Lady P

    This doesn’t mean to say that Andrea “gets away with it”! Although Lady P will have to pay the supplier, she is then able (should she wish) to sue Andrea personally for the recovery of the money or even the recovery of the plants and statues in substitution

    OK?

    August 4, 2015 at 4:34 pm #265485
    6shahir
    Member
    • Topics: 202
    • Replies: 296
    • ☆☆☆

    yes

    August 4, 2015 at 7:39 pm #265516
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    Good

  • Author
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