Zweli is mandated by Inkwazi Properties to sell one of their properties for one million rand. However,
Question:
Zweli is mandated by Inkwazi Properties to sell one of their properties for one million rand. However, Zweli is also in an undisclosed property development partnership with Jessica. They are interested in purchasing the property that Zweli has been mandated to sell on behalf of Inkwazi Properties. Zweli who has the authority to negotiate with a potential purchaser the purchase price, lowers the purchase price to half a million rand and sells the property to his partner Jessica for their property development business.
Required:
1. The relationship between Zweli and Inkwazi Properties is one of agency. Indicate in which capacity Zweli and Inkwazi Properties occupy in this instance.
2. Discuss which duty Zweli is in breach of in the scenario above and the remedies thereto.
Advanced Financial Accounting
ISBN: 978-0137030385
6th edition
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay