In relation to the Law of Agency, explain five circumstances under which an agent may be held personally liable to third parties

• If the principal does not exist or has no capacity.
• If he expressly or impliedly personal liability. The third party may when contracting with an agent, create a condition that the agent should be personally liable on the contract, and if the agent agrees he will be personally liable for any breach of contract.
• If the custom of that particular trade makes him liable as in the case of del credere agent.
• If he signs a negotiable instrument in his own name without making clear, on the face of the document that he is signing as an agent.
• If he executes a deed in his own name, or while purporting to act as an agent when he is actually acting on his own behalf, or if there is no principal in existence.
• If the agent acts for a concealed principal, if he so desires. A concealed of the principal use the principal if he desires. A concealed principal is one whose existence or identity is not disclosed by the agent at the time of entering into a contract. In this case, the third party and the agent become liable to each other on the contract.
• If the agent had exceeded his authority.

Share through

Leave a Reply

Your email address will not be published. Required fields are marked *