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Specimen question raven implied authority

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Specimen question raven implied authority

  • This topic has 3 replies, 2 voices, and was last updated 3 months ago by MikeLittle.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • March 26, 2022 at 8:48 am #651907
    Safiya.12345
    • Topics: 42
    • Replies: 54
    • ☆☆

    Jasper is the manager of a sports shop. Ravan, the shop owner, allows Jasper to order running equipment but has told him he must not order any other sports equipment. However, Jasper decides to place an order for cycling accessories. Ravan refuses to pay the cycling supplier.

    Based on the laws of agency, who is liable to the cycling supplier, and for what reason?

    1..Ravan is liable because he gave Jasper responsibility for ordering stock

    2.Ravan is liable because Jasper acted within his implied authority as store manager

    3.Ravan is liable because Jasper exercised his express authority as store manager

    4.Jasper is liable because he acted without authority

    Ans is 2 my question is why is the ans not 3 isn’t it expressed authority and if not why so?

    March 26, 2022 at 11:15 am #651926
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22548
    • ☆☆☆☆☆

    3 cannot be correct for the reason you have stated because Jasper acted beyond the express authority given by Ravan

    This case is similar to the case Watteau v Fenwick

    It may be worth your while to follow this link

    https://www.casebriefs.com/blog/law/corporations/corporations-keyed-to-klein/agency/watteau-v-fenwick/

    OK?

    March 27, 2022 at 11:58 pm #652076
    Safiya.12345
    • Topics: 42
    • Replies: 54
    • ☆☆

    Thank u sir

    March 28, 2022 at 7:21 am #652085
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22548
    • ☆☆☆☆☆

    Always welcome

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