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Law of agency

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Law of agency

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by MikeLittle.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • August 21, 2017 at 5:25 pm #402805
    accaed
    Member
    • Topics: 23
    • Replies: 0
    • ☆

    In one of the questions in an OpenTuition mock, it asks when an agent will NOT be liable for a contract and the answer is:

    “acts on his own behalf but DOES identify that he is an agent”.

    In the notes “where agent is acting on his own behalf, even though claiming to act on behalf of the principal” is an instance where the agent may be liable.

    Which is right?

    August 21, 2017 at 7:20 pm #402819
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    I had trouble finding the appropriate wording for this.

    Where an agent acts on his own behalf but tells the third party that he is an agent acting as such, the principal will be liable

    But then the principal will chase the agent to recover any money that the principal has had to pay out

    So, ultimately, the agent will be liable.

    But in the initial action by the third party, that action will be taken against the principal

    Is that better?

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    Posts
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  • The topic ‘Law of agency’ is closed to new replies.

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