a) When an agent is employed to act for their principal in all matters concerning a particular trade or business, they are termed a general agent. For example, a managing director of a company is a general agent of the company. (2 marks)

b) A special agent is one who is employed to make only a particular contract or series of contracts. For example, if a person sends a friend to bid for them at an auction, the friend is acting as a special agent. (2 marks)

c)

i) This situation falls under Agency of Necessity. The conditions applicable for this are:

• It must be impossible to get the principal’s instructions. (2 marks)
• There must be actual and commercial necessity to preserve or to avoid the physical destruction of the principal’s goods. (2 marks)
• The agent acted bona fide in the best interests of the principal. (2 marks)
• In the present case, the items disposed of by sale are subject to physical destruction. It was appropriate to apply an emergency reaction to preserve the goods and make a profit for the principal. (2 marks)
• There was no need to dispose of the charcoal early, as it is not subject to deterioration or physical damage within three days or immediately. (2 marks)

(Total: 10 marks)

ii) Protected goods are goods that:

• Have been let under a hire-purchase agreement or sold under a conditional sale agreement.
• One-half the price or total of which has been paid, whether in pursuance of a judgment or otherwise, or tendered by or on behalf of the hirer or buyer or a guarantor.
• In relation to which the hirer or buyer has not terminated the hire-purchase agreement or conditional sale agreement, or, in the case of a hire-purchase agreement, the bailment, by virtue of a right vested in the hirer.
  (Section 8 of Hire-Purchase Act, 1974 N.R.C.D. 292)
  (3 points @ 2 marks each = 6 marks)

(Total: 20 marks)