Business Law Questions 2022

Running head: BUSINESS LAW
BUSINESS LAW
Name of the Student
Name of the University
Author Note

BUSINESS LAW1
Question 1
Issue
The issue is whether Thomas shall be able to force or coerce Benjamin in selling the
house at actual price.
Rule
Section 164 as provided in the Contracts Act of the year 1950 states that it shall be the
obligation of the agent to perform business of the principal as per the directions that may be
forwarded by the principal, or when such directions does not exist, then as per the customs
relating to the business. If the agent performs actions outside the aforementioned scope, then, the
agent must make up the amount in case of loss, or deliver the amount in case of profit.
Section 169 as provided in the Contracts Act of the year 1950 states that when any
particular agent, without any knowledge or permission of the principal, deals in relation to the
business regarding the agency for himself and not for the principal, then in such a circumstance
the principal shall have the right and privilege to claim any benefit from his agent that might
have occasioned from such dealing or transaction.
Application
Applying section 164 of Contracts Act of the year 1950 in the given scenario, it may be
said that Benjamin performed actions outside the scope of his responsibilities as an agent, and
hence, he must make up the amount in case of loss, or deliver the amount in case of profit. This
section has been violated by Benjamin.

BUSINESS LAW2
Applying section 169 as provided in the Contracts Act of the year 1950, it may be said
that Benjamin, without any knowledge or permission of Thomas, dealt in relation to the business
regarding the agency for himself and not for Thomas. Therefore, due to such violation Thomas
shall have the right and privilege to claim any benefit from Benjamin that might have occasioned
from such dealing or transaction.
Conclusion
To conclude, it can be said that Thomas shall be able to force or coerce Benjamin in
selling the house at actual price.