QUESTION 1

State whether the following statements are "true" or "false"; and give reason for your answer. You are required to support your answer by referring to the relevant statutes and/or case laws.

1. Agency can arise by ratification, that is, by operation of law where it is impossible for the agent to get the principals instructions and the agents action is necessary to prevent loss to the principal.

2. Agency will terminate automatically by the agents death.

3. An agent can only disobey his principal's instructions if he honestly believes that disobeying those instructions is in his principal's best interests.

4. In order for apparent authority to arise, a representation must be made by the principal prior to the contract being entered into.

5. Where a third party deals with an agent, but is not aware that he is dealing with an agent, the principal will not normally be contractually bound to the third party.

6. There is an implied warranty provided under the Sale of Goods Act 1957, namely, where there is a contract for the sale of goods by description, that the goods shall correspond with the description.

7. The Sale of Goods Act 1957 does not apply if the exact price is not mentioned in the contract.

8. The Sale of Goods Act 1957 only applies to contracts for the sale of goods where ownership is to be transferred immediately the contract is made.

9. Where a contract for sale is for goods which are unascertained, title to the goods passes when the contract of sale is finalised.

10. According to the Consumer Protection Act 1999, a consumer is defined as a person who acquires or uses the goods or services to resupply them in trade.

11. According to the Consumer Protection Act 1999, a consumer has no right of redress against a manufacturer of goods where the goods fail to comply with any of the implied guarantees under the Act.