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Jemshah
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Enlightened
Asked: 2022-12-29T04:49:07+00:00 In:

Outline six circumstances under which a principal is not liable for the acts of the agent.(9 marks)July 2020

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Outline six circumstances under which a principal is not liable for the acts of the agent.(9 marks)July 2020

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    Enlightened
    1. Act outside the scope of authority: One circumstance under which a principal is not liable for the acts of the agent is when the agent acts outside the scope of their authority. This means that the agent exceeds the limits of their authority or engages in activities that are not authorized by the principal.
    2. Fraud or misrepresentation: A second circumstance under which a principal is not liable for the acts of the agent is when the agent engages in fraud or misrepresentation. This means that the agent makes false or misleading statements or takes deceptive actions in the course of their duties, which causes harm to the principal or third parties.
    3. Disobedience of instructions: A third circumstance under which a principal is not liable for the acts of the agent is when the agent disobeys the instructions of the principal. This means that the agent fails to follow the specific instructions or guidelines provided by the principal, and their actions are not within the scope of their authority.
    4. Acts of negligence: A fourth circumstance under which a principal is not liable for the acts of the agent is when the agent acts negligently. This means that the agent fails to exercise reasonable care or diligence in performing their duties, and their actions result in harm to the principal or third parties.
    5. Acts of misconduct: A fifth circumstance under which a principal is not liable for the acts of the agent is when the agent engages in misconduct. This means that the agent behaves in a manner that is inappropriate or unprofessional, and their actions are not within the scope of their authority.
    6. Acts committed outside the scope of employment: A sixth circumstance under which a principal is not liable for the acts of the agent is when the agent commits an act outside the scope of their employment. This means that the agent engages in activities that are not related to their job duties and are not authorized by the principal, and their actions are not within the scope of their authority.
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