CHAPTER 11 PRACTICAL PROBLEMS

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PRACTICAL PROBLEMS

(1)        X appoints the following persons. State whether they can be called as agent ofX:

(a)        A to cook for X and X’s family on a monthly salary of Rs.l,000/=.

(b)        B to furnish kitchen in his house for Rs. 1,000/=.

(c)        C to buy utensils for his kitchen for an agreed commission of 5% on purchases.

(d)       Mrs. X to buy provisions for his kitchen without any commission on purchases.

(e)        D to advise on financial matters.

Solution:

(a)        No, because A is servant.

(b)        No, because B is an independent contractor.

(c)        Yes because C is authorized to establish contract between X and a third party (i.e. supplier of utensils).

(d)        Yes, because Mrs. X is authorized to establish contract between X and a third arty (i.e. supplier of provisions).

(e)        No, because D is not authorized to establish contract between X and a third party.

(2)        Can the following persons appoint an agent?

(a) A minor who is of sound mind

(b) A lunatic who is major

(c)        Guardian of a minor who is of sound mind

(d)        A lunatic who is minor

Solution: Section to which the given problem relates: Section 183:

Decision and Reason:

(a)        No because he is not of the age of majority and hence he does not have contractual capacity.

(b)        No, because he is not of sound mind and hence he does not have contractual capacity.

(c)        Yes, because he has a contractual capacity.

(d)        No, because he does not have contractual capacity.

(3)        Can the following persons be appointed as an agent?

(a)        A minor who is of sound mind

(b)        A lunatic who is a major

(c)        A guardian of a minor who is of sound mind

Solution:          Section to which the given problem relates: Section 184.

Decision and Reason

Yes, because no person is debarred from being appointed as an agent whether he has

contractual capacity of not.

(4)        Mrs. X purchased some goods forming part of necessaries on Mr. X’s credit from Y. State whether Mr. X is liable to Y in each of the following alternative cases:

Case (a) If Mrs. X lives with Mr. Y

Case (b) If Mrs. X lives apart for no fault on her part

Case (c) If Mrs. X live apart for no fault on part of Mr. X

Solution:

Case (a) and (b): Yes, because there is a legal presumption that a wife has authority to pledge her husband’s credit for necessaries-

Case (c) No, because there is no legal presumption under this case.

(5)        X instructed Y, a transporter, to send the consignment of tomatoes to Karachi. After covering the half distance, Y found that tomatoes will not bearS the journey to Karachiwithout spoiling and sold at half the market price for good tomatoes- X sued Y. Discuss the legal position.

Solution: Section to which the given problem relates: Section 189.

Decision: The sale by Y is binding on X and Y is not liable to X.

Reasons Y a carrier acted as an agent by necessity.

(6)        X, a driver of a bus requested a passenger to drive the bus to its destinationf He drove the bus negligently and injured Z. is the owner of a bus liable?

Solution Section to which the given problem relates: Section 190.

Decision: The owner is not liable to Z.

Reason: The driver cannot delegate his authority.

(7)        X the principal, instructed Y his agent to insure the goods. Y failed to do so and the goods are destroyed by fire. Is Y liable to X?

Solution: Section to which the given problem relates: Section 211

Decision: Y is liable to compensate X for the loss.

Reason: Y has not acted according to X’s directions.

(8)        X, the principal, instructed Y his agent to put goods Z’s warehouse. Y puts half of the goods in Z’s warehouse and the balance in another equally safe warehouse. All the goods were destroyed by fire without any negligence on part of Y. is Y liable to X?

Solution: Section to which the given problem relates: Section 21L

Decision and Reason:

(a) Y is not liable for the loss of goods put in Z’s warehouse because he acted according to che

directions of his principal.

(b) Y is liable for the loss of goods put in another warehouse because he has not acted according to the direction of his principal.

(9)        Y under instructions from X, his principal contracted with Z for the sale of 100 bags of wheat. Afterwards, X refused to deliver the wheat and Z sued Y for breach of contract, Y defended the suit and was compelled to pay damages, costs and incurs Expenses. Is X liable to Y for such damages, costs and expenses9

Solution: Section to which the given problem relates: Section 222.

Decision: X is liable to Y for such damages, costs and expenses.

Reason: The employer of an agent is bound to indemnify him against the consequences of all lawful acts done bv such agent in exercise of his authority.

(10)      Y, under instruction from X his principal9 sold 100 bags of wheat in possession of X, which X had no right to dispose off? Y did not know this and handed over the proceeds of sale to X. afterwards Z the true owner of the goods sued Y and recovered the proceeds and costs. Is X liable to Y for proceeds and costs?

Solution: Section to which the given problem relates: Section 223.

Decision: X is liable to Y for proceeds and costs.

Reason: The employer of an agent is bound to indemnify him against the consequences of bonafide acts a done by the agent. 

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