Explain the circumstances that could cause an agent to be liable to a third party the agent had contracted with or had apparently contract with on behalf of the principal. B

Agency Tutorial Questions Creation of Agency 1. Explain the difference between actual and apparent authority. Refer to relevant examples or cases in your answer. 2. Melissa was authorised by her boss to place weekly stationery orders for up to $250. For four consecutive weeks she ordered S400 worth of supplies from Lewis Stationers because they were offering customers who spent S1600 in one month a free A4 paper folding machine and she knew her office needed one. Melissa's boss has found out and told Lewis Stationers they have to take back their machine and any supplies exceeding the value of $250. Answer the following questions, giving reasons. (a) Did Melissa have express, implied or apparent authority to place the order? (b) Is Melissa's company legally obliged to purchase the excess stationery? (c) Could Melissa be made liable for the cost of the excess stationery? Duties of Agents 1. List and briefly explain the main duties that agents owe to their principals Agent's rights and liabilities 1. What rights does on agent have against a principal? 2. Explain the circumstances that could cause an agent to be liable to a third party the agent had contracted with or had apparently contract with on behalf of the principal