30 Questions
Who stated that a person who signs a contract as an agent without a principal is bound by the contract?
Erle, C.J.
What is a necessary condition for a successful establishment of an act of ratification?
The alleged principal must execute the act of ratification.
What is required for a principal to legally approve an action or sequence of actions carried out by an agent?
The principal must be informed about the material facts.
What is the consequence of a person signing a contract as an agent without a principal?
The person is bound by the contract.
Who expressed the view that for a principal to legally approve an action, there must be clear proof that the principal was informed about the significant details?
Wiles, J.
What is required to establish an agency relationship implied through actions?
Clear and affirmative behavior indicating its existence
What is the requirement for a valid act of ratification?
The alleged principal must execute the act of ratification.
What is the legal stance on agency by estoppel?
The principal is precluded from refuting the presence of an agency connection
What happens if a principal makes it seem like someone is their agent and a third party deals with that person based on that assumption?
The court may prevent the principal from later disputing the agency relationship
What is the consequence for the principal if they lead a third party to believe someone is their representative?
The principal is liable for the actions of the assumed agent
What does the court consider when determining agency by estoppel?
The circumstances leading to the assumption of an agency relationship
What is the result of agency by estoppel on the principal's liability?
The principal's liability is increased
What is the effect of ratification on an act that has been done?
It puts the act in the same position as if it had been antecedently authorized
In which scenario does an individual act on behalf of someone else without prior formal arrangement?
Agency by necessity in moral obligations
What is the exception to the principle of relation back?
When an innocent third party has acquired a right or benefit
What is implied authorization based on?
Urgent conditions necessitating decision-making
What is the significance of trust in agency relationships?
It is invested in the agent by the principal
What is the primary purpose of the principle of agency by estoppel?
To ensure fairness and predictability in business transactions
What reflects societal values and ethical behavior in agency by necessity?
Moral obligations absent any formal arrangement
In the Lukan v. Ogunnusi (1972) case, the Supreme Court of Nigeria affirmed that:
The principal is estopped from denying the fact of the agent's agency if they have led the third party to believe the agent has authority
What is the basis of ostensible authority?
The doctrine of 'holding out' by the principal to the third person
In what case did the court emphasize the element of estoppel in agency by estoppel?
Didigun v. R.T.Briscoe Ltd (1978)
How may the principal 'hold out' the agent as having authority?
By allowing the agent to hold themselves out as having authority
What is not a relevant factor in determining agency by estoppel?
The time of day the transaction was made
What is a necessary condition for a wife to pledge credit in the absence of her husband?
The husband had deserted the wife.
What is the primary consideration for determining whether an action taken by a claimed agent is reasonably necessary?
The circumstances of the case.
What is the consequence of a claimed agent failing to prove the existence of all the necessary conditions for agency?
The claimed agent is denied reliefs in respect of expenses or damages.
What is the primary purpose of the conditions for necessity of agency?
To ensure that the claimed agent acted in the best interests of the presumed principal.
What is a requisite for a wife to pledge credit in the absence of her husband?
The expenditure was suitable for her style or situation in life.
How many conditions must a claimed agent prove to establish the existence of an agency of authority?
All of the conditions listed
Test your understanding of agency relationships, including implied agency and agency by estoppel, in the context of business law. Learn how to identify specific behaviors that indicate an agency relationship exists between two parties.
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