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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.
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  • July 19, 2016 at 12:53 am #327438
    billytron
    Member
    • Topics: 3
    • Replies: 0
    • ☆

    question : in the context of law of agency an agent will not be viable for a contract in which of the following cases
    where the agent :
    1: acts on his behalf but does identify he is an agent
    2: fails to disclose that they are acting as agent

    the other two options are not necessary

    Sir my problem is that i solved this same question in kaplan exam kit’s mock exam Qs # 38
    everything is same in the question but in kaplan’s kit the correct answer is:
    2.fails to disclose that they are acting as agent

    and in your mock exam that i gave here the answer is
    1: acts on his behalf
    now iam confused please help i have an exam of f4 ENG cbe on thrusday.

    July 19, 2016 at 5:20 am #327459
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    If a person enters a contract and does NOT tell the other party that he is acting as an agent, then that person will be liable (not viable, as you have written!) under that contract

    Where that same person acts on his own behalf but tells the other person that he acts as an agent, he will not be liable under that contract

    However! He WILL be liable to the principal who suddenly finds himself faced with a debt for a transaction about which he had no knowledge

    So I believe that Kaplan is incorrect – just make doubly sure that you have correctly read and typed the question

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