LAW OF AGENCY: NOT TO DELEGATE HIS AUTHORITY

Question 1

How is the relationship between a principal and agent?

Answer 1

• The relationship between the agent and principal is personal where the principal places trust in the agent he appoints.
• So, the agent cannot shift the authority by employing another person to act to a 3rd party.

Question 2

What is the general rule and maxim?

Answer 2

• General rule: An agent cannot appoint a sub-agent
• Maxim : Delegatus non potest delegare (a delegate cannot delegate)

Question 3

What are the exceptions?

Answer 3

1. Where the principal approves of the delegation of authority.
2. Where it is presumed from conduct of both parties that the agent would have the power to delegate.
3. . Where the custom of trade or business permits delegation.
   4.. Where the nature of agency is such that delegation of authority is necessary to complete the business.
4. In case of necessity or unforeseen emergency.
5. Where the act to be done is purely ministerial or clerical and does not involve exercise of discretion.

Question 4

What are the cases in not to delegate his authority?

Answer 4

1. De Bussche v Alt
2. John McCann & Co vs Pow

Question 5

What happened in De Bussche v Alt?

Question 6

What happened in John McCann & Co v Pow?