Question 4

Nina owns a number of private residential properties, which she leases out to tenants in order to earn rental income. To assist her on these matters, she issued an appointment letter to James, to appoint James as her exclusive property agent to conduct negotiations with prospective tenants. Nina told James not to sign any contracts on behalf of her, as she will do so personally. Jessie is a nurse and essential worker who was recently kicked out of her former residence as her previous landlord became prejudiced against her after finding out about her occupation. As a result, Jessie has to look for a new place to rent.

Jessie contacted James after seeing an advertisement put up by James for the rental of the properties. Jessie requested for a meeting with James, and James took a cab to a caf to meet with Jessie. After some discussion, during which James explained that he did not own the properties and was only acting as an agent for Nina, Jessie managed to identify a property to her liking. Jessie wanted to sign the lease contract immediately, with the lease to commence at the beginning of the next month. James was sympathetic towards Jessie as she was an essential worker who has contributed much to society, so James immediately signed a lease contract with Jessie for that property, thinking that he could explain the matter to Nina later.

A day later, after hearing James' explanation, Nina was agreeable to ratify the lease contract with Jessie.

(a) Describe and explain two (2) ways in which the agency relationship between Nina and James could have arisen in the above scenario. Support your answer with specific examples based on the above scenario. (17 marks)

(b) Discuss whether James has breached any duty as an agent. You are only required to discuss one (1) duty that James may have breached. (3 marks)