Background

The Law of Agency (60) The owner and Director of Smart Solutions (Pty) Ltd, Derrick Walter, seeks your legal advice on how his Personal Assistant, James Matthew, can assist him with signing and managing the various contracts and agreements entering the firm. As Derrick is often travelling out of the country, he is unable to timeously sign contracts and agreements with service providers and clients which has caused a few problems for the company. Therefore, Derrick heard about the concept of Agency from a colleague and approached you for your legal opinion whether it is the best solution for the above situation.

You are requested to draft a legal opinion to Derrick and provide him with concise legal advice, using the following guidelines in your legal opinion:

1. Define the Law of Agency.

2. Compare general and special agents and advise on the most suitable role for James.

3. List the duties of an Agent and the duties of a Principal.

4. Discuss when an Agent will be held liable under an agency agreement.

5. Discuss how an agency agreement is terminated.

Begin your legal opinion by briefly setting out the facts of the matter and then state the legal issue in dispute in the above scenario. Thereafter, set out the relevant common law provisions applicable to the scenario, followed by an in-depth application of the facts of the matter to the relevant law. Finally, provide a brief conclusion highlighting your legal advice to the Client. Refer to the FIRAC methodology on page 93 (Annexure A) of your module guide for more information.