Mr Choden frequently asks his secretary to order boxes of donuts from Delightful Donuts in his name for him, his staff and friends. One day he has an argument with his secretary and she decides to play a trick on him. She knows Mr Choden does not like pizza so she quietly rings Pizza House and tells them that she is the secretary for Mr Choden the well-known entrepreneur, that she is acting on his behalf and that Mr Choden would like 15 pizzas delivered to him. She then leaves work with a smile on her face. Mr Choden is bemused when 15 pizzas arrive with his name on the order and is not sure whether he is liable to pay or not.

QUESTION FOUR: (15 marks. 540 words maximum)

Explain briefly the nature of agency and then discuss whether Mr Choden or his secretary is liable to pay for the pizza order.