Question: Issue: Whether there is an agency contract between Cindy and Ah Fish due to break down emergency? Law: Statutory: According to Section 142 of Contracts

 Issue: Whether there is an agency contract between Cindy and Ah

Fish due to break down emergency? Law: Statutory: According to Section 142

Issue: Whether there is an agency contract between Cindy and Ah Fish due to break down emergency? Law: Statutory: According to Section 142 of Contracts Act 1950 provides that an agent has authority, in an emergency, to do all such acts for the purpose of protecting his principal from loss as would be done by a person of ordinary prixdence, in his own case, under similar circumstances. There are 3 conditions that must be satisfied for there to be an agency of necessity (a) an emergency must arise justifying the action to preserve or dispose of the property of the principal; (b) it must be impossible to contact the principal to take instructions; and (e) the agent must have acted in the interests of the principal Case Law: In Great Northern Railway Cov Swaffield (1874), a horse was being transported cross-country by rail but arrived late at the railway station. The railway company felt they had no choice but to stable the horse overnight. It was held that despite not being authorized by the owner of the horse, the railway company could claim rei chursement for the costs incurred. Application: In this case, there was an emergency of the breakdown of van and refrigeration in the journey of transporting Ah Fish's fresh sea produce to the restaurant. It was impossible for Cindy to get Ah Fish's instruction when Cindy tried several times to contact Ah Fish but all her attempts failed. Besides, Cindy's action of selling fresh sea produce at 10% below the price that Ah Fish had contracted to sell to the restaurant was necessary to prevent anymore losses to Ah Fish because fresh sea produce would deteriorate fast If left without refrigeration. Under Section 142, Cindy has fulfilled all the conditions for there to be a valid contract of agency by necessity. Conclusion: In conclusion, there is a valid contract of agency by necessity between Cindy and Ah Fish. Therefore, Cindy would not be liable

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