Read and respond to the questions below.

Qs 1;

1. What is actually meant by the expression 'agency by ratification' and what is the effect of such ratification?
2. What is the nature of the authority that can be granted to a duly appointed agent?
3. Andrew who was a stock broker was approached and instructed by Patrick, to sell his stock when the market price reached 80% per unit of stock. However, Andrew failed to sell at 80% but negligently held onto the stock. The stock market then dropped drastically, and Andrew was forced to sell his stock for less than 80%. What can Andrew do? Discuss.
4. Paul is seeking your advice on the following matter. His next door neighbour Paula, has gone on extended holidays for several months, travelling to Spain to escape the windy and icy coastal winter in Denmark. Before she left, she asked Paul to 'keep an eye on her house and property' and she gave him the key to the house, so that he could water the indoor plants in her absence and he noticed some glass damage to the sliding doors. A severe storm made a huge crack in Paula's sliding glass door and with a little bit of pressure the glass would just fall down. Paul heard on the radio that more winds and storm were forecast for the area later that day and evening. According, Paul has contacted the local glazier in order to replace the window but he is wondering if he should cancel this agreement with the glazier to replace glass because he is worried that he might become personally liable for the glazier's repair bill in Paula's absence. Unbeknown to Paul, Paula whilst on holidays was in a fatal accident and has died whilst travelling in southern Spain. Advise Paul of his legal rights and liabilities, while considering the various ways that an agency relationship may be found to exist by the courts in certain situations.
5. A solicitor, Lawrence, had control of a number of local and international companies, including Global Developments Ltd, which purchased, renovated and then resold properties across Europe. The solicitor's articled clerk, Alexander owned a private investment company called Unique Estates, which was also involved in property purchases, renovations and resale. A manager, named Luke was appointed to manage the companies controlled by Global Developments Ltd and under the control of the solicitor, Lawrence agent. Luke often passed on information to the solicitor's clerk, Alexander about properties that Global Developments Ltd was considering buying and or were in fact going to buy, which was in breach of his agreement with the Lawrence, solicitor and his employer. The solicitor's clerk, Alexander, intentionally used that information for the benefit of his own company, Unique Estates, by purchasing those particular properties that he became aware of from Luke, the manager of the companies. Has the Lawrence, solicitor any remedy against either the manager, Luke or Unique Estates? Discuss and explain your answer fully.

Qs 2;

1.Which of the following is an example of an agent appointed by implication?

a) Anna is entrusted with Paula's property and finds it necessary to do something with it in order

to preserve it.

b) Paula retrospectively affirms the authority of Anna.

c) Anna and Paula become partners in a partnership.

d) Paula appoints Anna under a general power of attorney to carry out a particular transaction

on his behalf.

2.In which of the following circumstances will an agent not be personally liable under a contract

entered into with a third party?

a) Where the Agent has disclosed to the third party that they are an Agent and they have named

the Principal.

b) Where the Agent has disclosed to the third party that they are an Agent and they have not

named the Principal.

c) Where the Agent has executed a deed in their own name.

d) Both answers a) and b).

3.Which of the following rights does an agent not have unless there is an express or implied agreement

that the agent is to have that right?

a) The right to be remunerated.

b) The right to be reimbursed for authorised expenses.

c) The right to be indemnified against liabilities incurred while carrying out the Principal's

instructions.

d) The right to retain possession of the Principal's goods until the Agent has been paid.

4.Which of the following is an example of an agent that is appointed by ratification?

a) Adam is entrusted with Peter's property and finds it necessary to do something with it in order

to preserve it.

b) Peter retrospectively affirms the authority of Adam.

c) Adam and Peter become partners in a partnership.

d) Peter appoints Adam under a general power of attorney to carry out a particular transaction

on his behalf.

5.In which of the following circumstances will an agent be personally liable under a contract entered

into with a third party?

a) Where the Agent has executed a deed in their own name.

b) Where the Agent has not disclosed to the third party that they are an Agent.

c) Where the Agent is in breach of warranty of authority.

d) All of the above.