Liam works for a company called Impact Solutions $($Pty$)$ Ltd$,$ and he is a logistics and

procurement administrator in the Procurement Department at Impact Solutions. One

day, Liam meets with a potential supplier, Rebecca, who is interested in a significant

deal with Impact Solutions. During their meeting, Liam is extremely impressed with

Rebecca and her proposal that he feels like Impact Solutions must do business with

her. Liam then falsely represents that he has the necessary authority to sign contracts

on behalf of Impact Solutions, even though he doesn't have the required authority from

his company, as it is only the procurement manager who can sign contracts on behalf

of Impact Solutions. Rebecca, the supplier, relies on Liam's representation of authority

and believes that Impact Solutions is committed to the deal.

She invests a significant amount of time and resources in preparing for this business

transaction, ordering additional materials, and hiring more staff to meet Impact

Solutions' anticipated demands. Rebecca is excited about the partnership and has

faith in Liam's representation.

However, when Rebecca sends over the contract for Liam to sign on behalf of Impact

Solutions so the transaction can get underway, Liam hesitates and eventually

confesses to his managers that he never had the authority to commit the company to

this deal with Rebecca. Impact Solutions refuses to honour and bind themselves to

the agreement that Liam had promised to Rebecca, leaving Rebecca in a difficult

situation. She has already invested money and resources into the deal based on

Liam's fraudulent misrepresentation.

Required:

$6\mathrm{.}1$ With reference to the scenario above, identify the typical parties involved in an

agency relationship. $($For example: X is the $....,$ Y is the $....$ etcetera$)$

$(3$ marks$)$

$6\mathrm{.}2$ Determine and discuss the liability of Liam in this scenario by taking the facts

of the scenario into consideration. $(9$ marks$)$