Terry and Linda are financial advisors. Terry needs to travel overseas to secure a business deal and asks Linda if she would act as his agent. Terry says to Linda All you need to do is receive three phone calls. I will leave the relevant bank details ready to execute the transactions. You just need to buy a fixed quantity of shares for a few of my clients. I will let the clients and the broker know you will be doing business with them. Terry leaves for his trip and while away Linda receives the three buy instructions as Terrys agent. Linda triples the buy amount approved by Terry when she puts through the relevant transactions with the broker. The broker makes the trades and a confirmation receipt is sent to Terrys email address. When Terry checks his email he is shocked by what has occurred. Terry cannot stop the trades and after the share price plummets, each client loses a significant amount of money. Terry calls his broker and the broker replies that he had instructions Linda would be doing business on Terrys behalf and that he was merely following Lindas orders. Angry at their losses, Terrys clients contact Terry to have their investment refunded. Terry consults you for advice. Advise Terry who is liable for the share purchases and losses using the law of agency.