QUESTION $6$

$(19$ marks$)$

Liam works for a company called Impact Solutions $($Pty$)$ Ltd$,$ and he is a logistics and procurement administrator in the Procurement Department at Impact Solutions. One day, Liam meets with a potential supplier, Rebecca, who is interested in a significant deal with Impact Solutions. During their meeting, Liam is extremely impressed with Rebecca and her proposal that he feels like Impact Solutions must do business with her. Liam then falsely represents that he has the necessary authority to sign contracts on behalf of Impact Solutions, even though he doesn't have the required authority from his company, as it is only the procurement manager who can sign contracts on behalf of Impact Solutions. Rebecca, the supplier, relies on Liam's representation of authority and believes that Impact Solutions is committed to the deal.

She invests a significant amount of time and resources in preparing for this business transaction, ordering additional materials, and hiring more staff to meet Impact Solutions' anticipated demands. Rebecca is excited about the partnership and has faith in Liam's representation.

However, when Rebecca sends over the contract for Liam to sign on behalf of Impact Solutions so the transaction can get underway, Liam hesitates and eventually confesses to his managers that he never had the authority to commit the company to this deal with Rebecca. Impact Solutions refuses to honour and bind themselves to the agreement that Liam had promised to Rebecca, leaving Rebecca in a difficult situation. She has already invested money and resources into the deal based on Liam's fraudulent misrepresentation.

Required:

$6\mathrm{.}1$ With reference to the scenario above, identify the typical parties involved in an agency relationship. $($For example: $x$ is the $....,Y$ is the $....$ etcetera$)$

$(3$ marks$)$

$6\mathrm{.}2$ Determine and discuss the liability of Liam in this scenario by taking the facts of the scenario into consideration.

$(9$ marks$)$

$6$

HLWC$200-1-$Jan$-$June$2024-$FA$1-$DK$-$V$2-02012024$

Note to student: Apply as you answer your question. Remember the question states "taking the facts of the scenario into consideration", therefore you must always make reference to the information$/$ facts provided in the scenario to answer the question$($s$).$

$6\mathrm{.}3$ Assume that Liam had been duly appointed as an agent for Impact Solutions $($Pty$)$ Ltd$.$ Apart from the overarching responsibilities of an agent, what are some of the additional duties that Liam must strive for and perform as an agent?

$(7$ marks$)$