BAF2105 CAT VIRTUAL
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Kenyatta University *
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MISC
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Law
Date
Nov 24, 2024
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docx
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2
Uploaded by kipvictor100
BAF2105
BUSINESS LAW
VIRTUAL CAT
Chacha and Chichi are Business law students at MKU. After class, Chichi said that he now
knew that an agent must perform his duties personally; period! Chacha laughed at him
and told him that she is among those students who are not keen in class and the position
was that an agent can sometimes appoint another person to perform the task he has been
given by the principle and the law recognized this. Explain who was right and support your
explanation with examples
(15 Marks)
Both Chacha and Chichi have expressed different perspectives on the issue of whether an agent
must personally perform their duties or if they can appoint someone else to perform those tasks
on their behalf. Let's examine their viewpoints and support them with examples.
Chichi's Viewpoint:
Chichi believes that an agent must perform their duties personally, without the ability to delegate
or appoint another person to fulfill those tasks. This perspective aligns with the general principle
of personal performance in agency law, where the agent is expected to carry out their obligations
directly. For instance, if Chichi is appointed as an agent to negotiate a contract, he would argue
that he cannot assign someone else to conduct those negotiations.
Chacha's Viewpoint:
Chacha contends that an agent can sometimes appoint another person to perform the tasks
assigned to them by the principal. This perspective highlights the concept of delegation in agency
law, where an agent has the ability to entrust certain responsibilities to someone else. For
example, if Chacha is appointed as an agent to deliver goods on behalf of the principal, she
would argue that she can hire a shipping company to handle the transportation.
Resolution:
The resolution lies in understanding that both viewpoints are valid in different contexts. The
general rule is that an agent must personally perform their duties. However, there are exceptions
where the law recognizes the agent's right to appoint another person to carry out specific tasks.
These exceptions include:
Custom or Trade Practice: In certain industries or trades, it is customary for agents to delegate
certain functions. For instance, a real estate agent may hire an assistant to show properties on
their behalf.
Implied Authority: If the principal has granted the agent implied authority to delegate tasks, the
agent can appoint another person to fulfill those duties. This authority may arise from the nature
of the agency relationship or the usual course of business.
Necessity or Practicality: In situations where it is impractical or impossible for the agent to
perform the tasks personally, they can appoint someone else. For example, if the agent falls ill or
is unavailable, they can delegate their responsibilities to ensure the principal's interests are
protected.
Customary Delegation: The principal may have consented to or ratified a past instance of
delegation by the agent. This establishes a custom or understanding that allows future delegation.
It's important to note that even when an agent delegates their tasks, they still remain responsible
and accountable to the principal for the performance of those tasks. The agent cannot entirely
absolve themselves of liability by appointing another person.
In conclusion, both Chacha and Chichi have valid points. While the general rule is that an agent
must personally perform their duties, there are exceptions where an agent can appoint someone
else to fulfill specific tasks. The application of these exceptions depends on factors such as trade
practices, implied authority, necessity, and customary delegation, ensuring that the principal's
interests are protected.
Danty is the proprietor of Danty Dailies, which published an article two weeks ago to the
effect that Mr. Chege the managing director of Child Welfare Organisation had embezzled,
Sh. 5 million from the organization to purchase a private residential house for himself and
family.
Investigations have revealed that Mr. Chege bought the house out of a loan of Sh. 6
million advanced to her by Tajiri Bank and secured on the house.
Mr. Chege is aggrieved
and seeks your legal advice.
(15 Marks)
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