Principal-Agent Relationship On February 18, 2023, at about 10 P.M., Sackeus Shalanga drove his 2021 BMW 4-series coupe to the door of the newly opened Fishrot Restaurant at 55 Robert Mugabe Avenue in Windhoek. Standing in front of the door was Jonas Sinvula, dressed in a self-supplied uniform, comprised of a regular doormans cap and matching jacket. Sackeus gave the keys to his vehicle to Jonas and requested that he park the car as he had done in the past three occasions when he visited the restaurant. He gave Jonas a N$200.00 tip and received a claim check (a receipt for property that has been left or deposited). Sackeus then entered Fishrot restaurant and remained there for approximately 45 minutes and when he departed, Jonas was unable to locate the car which was never returned to Sackeus. At the time of this occurrence, the restaurant had been open for only 3 months, during which time Sackeus having loved the food, soft music played and ambience, had patronised the restaurant on at least three prior occasions. The Fishrot Restaurant did not maintain any sign at its entrance or elsewhere that it would provide parking for its customers (nor, apparently, any sign warning to the contrary). Jonas parked cars for customers of Fishrot Restaurant. Although not employed by the restaurant, he parked vehicles for its patrons with the restaurants knowledge and consent. He stationed himself in front of the restaurant during the course of the day and evening. Jonas after parking the cars would place the patrons car keys on a rack inside the restaurant. Jonas was so engaged during the evening of February 18, 2023. The owner of Fishrot Restaurant clearly knew of and did not object to Jonas activities outside the restaurant. When Jonas failed to produce Sackeus car, a presumption of negligence arose which now 3 required Fishrot Restaurant to come forward with a sufficient explanation to rebut this presumption. The owner of Fishrot Restaurants witness testified at an examination before trial: Q. Did anybody stand outside your restaurant in any capacity whatsoever? A. There was a man out there parking cars, but he was in no way connected with us or anything like that. He parked cars of customers that visited Fishrot Restaurant. Q. Did you know that this gentleman was standing outside your restaurant? A. Yes, I knew he was there. Q. How did you know that he was standing outside your restaurant? A. Well, I knew the mans face because he has been parking cars of customers since the Restaurant opened its doors to the public. When we first opened up here, we didnt know if we would have a doorman or have parking facilities or what we were going to do at that time. We just let it hang and I told this Jonas, Jonas was his name, that you are a free agent and you do whatever you want to do. I am tending to the customers in the restaurant and what you do in the street is up to you, I will not stop you, but we are not hiring you or anything like that, because at that time, we didnt know what we were going to use the parking lot or get a doorman and put on a uniform or what.

Required

1. After reading the article would you say that there is a Principal-Agent relationship between Fishrot Restaurant and Jonas Sinvula? Explain your answer using your knowledge of PrincipalAgent relationship. [5]

2. Explain using examples, the Law of Agency. Why is this law necessary? [3]

3. Assuming Jonas was working as an agent of Fishrot Restaurant how and where would the relationship of the two be defined and explained. List some items that would be in the agreement/contract between the two. [5]

4. Assuming Jonas was 15 years old, would the principal-agent relationship be valid and recognised? Explain your answer. [5]

5. The principal-agent relationship creates a fiduciary relationship between the parties involved. Explain the concept of fiduciary relationship. [2] 4

6. Assuming there is a Principal-Agent relationship between Jonas Sinvula and Fishrot Restaurant, what type of agent is Jonas? Explain your answer. [5]

7. Using practical examples from a Namibian perspective discuss any 10 duties of the Agent to the Principal. [10] End [30]