First Principles of Business Law

The law of agency

6. A principal's duties to their agent

6.3. Other claims by an agent against their principal

 

 

 

Read the facts below (they are the same as in the previous question) and then answer the questions.

A, a cattle breeder, appoints B as his agent, instructing B to travel to neighbouring farms, and negotiate on A's behalf to purchase a good breeding bull. He agrees to pay B 10% of the purchase price as payment for carrying out this task. A lets B use a truck owned by A to drive to various farms. After a week of looking, B finds a good breeding bull owned by C that C is willing to sell. B purchases the bull for A for $5,000, arranging that A will pay for the bull when it is delivered to him. C says he will deliver the bull to A's farm, but only if B pays him $100 straight away to cover the cost of the delivery. B pays C $100 of his own money for this purpose.

1. If A does not pay B the agreed 10% of the purchase price or any other money A owes to B, would B be entitled to keep possession of A's truck in an effort to force A to pay him?

2. On his way back to town from C's farm, B collides with a gatepost when trying to squeeze through a partly opened gate, damaging the paint on A's car. B pays $200 to have the damage repaired. Can B claim this amount from A?

   
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