- 7 Marks
Question
Fiko in Cape Coast appointed Pinfa at Takoradi (Cape Coast and Takoradi all in the Republic of Ghana) as his agent. Pinfa had the authority to contract with farmers for the cultivation and supply of tiger nuts on his behalf. While the agency relationship exists, Pinfa contracted with Agya Anto for the supply of 10 bags of tiger nuts without disclosing the existence of the agency relationship with Agya Anto.
Required:
i) Has Fiko any right to step in the contract between Pinfa and Agya Anto? (4 marks)
ii) Has Agya Anto any available right in his contract with Pinfa while he (Pinfa’s) agency with Fiko exists? (3 marks)
Answer
ci)
- This is a case of an undisclosed principal.
- Fiko, as the principal of Pinfa, has the right to intervene in the contract between Pinfa and Agya Anto while the authority given to Pinfa lasts.
- Fiko may make any claim on the contract and, if necessary, sue Agya Anto directly.
- If Fiko makes use of this right, he will be personally liable to Agya Anto.
cii
Agya Anto has the option to either sue Fiko or Pinfa if he discovers that Fiko is the principal.
- Tags: Agency Law, Contract Rights, Legal Obligation, Undisclosed Principal
- Level: Level 1
- Topic: Agency
- Uploader: Dotse