Agency Law And Partnership

CORPORATION AND
CONTRACT LAW
Agency Law And Partnership

CONTRACT LAW ISSUE
• the liability of Swimmingpool Co with respect to the actions
of Martin.
• Whether the company is entitled to deny liability for the
acts of Martin based on the contention that Martin has
failed to follow their instructions.
• Whether any laws has been violated by Martin in in making
a plan for setting up his business similar to that of the
company he has been employed with.

CONTRACT LAW RULE
• The relationship of agency is said to have existed when a person
delegates his tasks to another where the person so delegated has
the power to represent the person delegating in front of a third party.
• The principal authorising an agent to act on his behalf need to carry
all the liabilities that accrues by virtue of the relationship of agency
in relation to those transactions carried out by the agent in the
furtherance of the authority extended.
• The tortious actions committed by an agent while acting within the
scope of the authority conferred upon him by the agency is to be
borne by the principal with respect to the liabilities so incurred.

RULE CONTINUED
• instances where the agent has been expressly acting outside the
authorisation extended by the principal entitle the principal to deny
liability for the acts of the agent exceeding the authority.
• The agency relationship creates a fiduciary duty that the agent owes
towards principal and should reflect in all his actions the best interest
pertaining to the principal.
• The agent is not permitted to accrue any profit personally from the
endeavours that he has been carrying out under the authorisation of and
on behalf of the principal and every such profit is required to be furnished
and remitted to the principal.
• the agent is required to refrain from setting up any business which officer
competition to that of the business of the principal.