• act on behalf of and be subject to the control of the principal,
• act in good faith and not to make undisclosed profits
• act within the scope of authority or power delegated by the principal,
• discharge his or her duties with appropriate care and diligence,
• avoid conflict between his or her personal interests and those of the principal, and
• promptly hand over to the principal all monies collected on principal’s behalf.
                                                                                                                                                                                  (Any 4 points)

This is a case of undisclosed principal
Fiko as a principal of Pinfa, and has the right to intervene in the contract between Pinfa and Agya Anto while the authority given to Pinfa lasts. Pinfa may make any claim on the contract and if necessary sue Agya Anto directly. If Fiko makes use of this right he will be personally liable to Agya Anto.

Agya Anto has the option to either sue Fiko or Pinfa if he discovers that Fiko is the principal.

The law of agency provides for the rights and duties between the principal and agent. An agent owes various duties to his principal and the foremost is fiduciary duty. This means that the agent must act on utmost good faith and be sincere and honest in his dealings with his principal. The agent does not have to make secret profit beyond the commission or other remuneration paid by his principal. Thus the agent is accountable for every profit which he makes without the principal’s consent.
As the purchaser of the car had paid Duu a commission, Duu is in breach of his fiduciary duty that he owes to Cho. Cho stands to recover the GH¢5, 000 he paid to Duu and the GH¢2,500 received as bribe paid by the purchaser.

• By mutual agreement-Here both the principal and the agent may agree to terminate the agency at any time they wish.
• By revocation of the agent’s authority; the principal may at any time revoke the authority given to the agent and prevent him from making binding contracts with third parties. When this happens, the agent may have the right of action for breach of contract against the principal where the revocation is unjustified.
• By death of the principal or agent, save in some exceptional cases.
• By bankruptcy or insanity of principal or agent, save in some exceptional cases.
• By frustration
• By intervening illegality like legislation passed to nullify such types of agency.
• By agent completing the performance of the agency;
• By the expiration of time, where the agency was created for a limited time.
• By the principal becoming an alien enemy;
• By renunciation
                                                                                                                                                                                  (Any 5 points)

• Where he agrees to accept personal liability
• When the agent is not appointed by deed and he signs the Deed, he becomes personally liable thereon.
• Where the agent signs a bill of exchange in his own name but does not indicate that he is signing as a mere agent;
• Where trade custom makes the agent personally liable
• Where the supposed agent is the principal but purports to contract as an agent;
• Where an agent acts for an undisclosed principal but does not make it clear that he is acting as an agent.
                                                                                                                                                                                  (Any 5 points)

i) The relationship between Eddie and Bertha is an Agency Relationship.
ii) Eddie has authority to buy goods for the shop as his normal course of duty.
iii) The Instruction to Eddie not to buy from Crunch Ltd is not known to Crunch.
iv) Therefore Bertha is liable for the payment of the goods to Crunch Ltd.

i) The relationship between Eddie and Bertha is an Agency Relationship
ii) Eddie has authority to buy goods for the shop as his normal course of duty
iii) Being a regular supplier, Drinkit knows Eddie as the Manager of the shop
iv) The fact of Eddie’s resignation is not known to Drinkit or they were unaware
v) Bertha is therefore liable for the cost of the Whisky.