Law and Legal Issues 1
Law and Legal Issues
By (Insert Your Name)
Course Name
Course Instructor
Institutional Affiliation
City and State
Due Date
, Law and Legal Issues 2
2.1. Thabo's Accountability under Agency Law
Issue
The main issue is deciding on Thabo's liability to Global Trade Solutions (Pty) Ltd for
executing his actions, which were beyond the delegated limits, and reaching an undertaking with
a supplier for a massive shipment of pharmaceutical products.
Law
In line with principles of agency law, an agent shall bear specific duties to their principal,
which include loyalty, obeying instructions, duty of care, only acting with the authority and
disclosing needed information—the common law and common law principles of agency back up
the law of agency in South Africa. The Men's Act of 2008, generally called the Companies Act,
pinpoints the duties and liabilities of agents in Section 76 (A Review of The King IV Report on
Corporate Governance, n.d.).
Application
As the Global Business Trade Solutions (Pty) Ltd agent, Thabo was responsible for
performing his duties in compliance with the scope of his authorisation set by the company's
agreement. Thabo's going beyond his command on a secret transaction represents an act of
wrongdoing regardless of the circumstances. This was exemplified in the law case of Lloyds
Bank Ltd v Bundy (1975), which exacted that the acts of an agent that go beyond their appointed
authority are void unless ratified. Thabo's actions undergo agency law, and this principle
demands the agent to owe specific duties and liabilities concerning the principal already
represented. Thabo should be Global Trade Solutions (Pty) Ltd. for his adverse action of
exceeding power and entering dead contracts.
Law and Legal Issues
By (Insert Your Name)
Course Name
Course Instructor
Institutional Affiliation
City and State
Due Date
, Law and Legal Issues 2
2.1. Thabo's Accountability under Agency Law
Issue
The main issue is deciding on Thabo's liability to Global Trade Solutions (Pty) Ltd for
executing his actions, which were beyond the delegated limits, and reaching an undertaking with
a supplier for a massive shipment of pharmaceutical products.
Law
In line with principles of agency law, an agent shall bear specific duties to their principal,
which include loyalty, obeying instructions, duty of care, only acting with the authority and
disclosing needed information—the common law and common law principles of agency back up
the law of agency in South Africa. The Men's Act of 2008, generally called the Companies Act,
pinpoints the duties and liabilities of agents in Section 76 (A Review of The King IV Report on
Corporate Governance, n.d.).
Application
As the Global Business Trade Solutions (Pty) Ltd agent, Thabo was responsible for
performing his duties in compliance with the scope of his authorisation set by the company's
agreement. Thabo's going beyond his command on a secret transaction represents an act of
wrongdoing regardless of the circumstances. This was exemplified in the law case of Lloyds
Bank Ltd v Bundy (1975), which exacted that the acts of an agent that go beyond their appointed
authority are void unless ratified. Thabo's actions undergo agency law, and this principle
demands the agent to owe specific duties and liabilities concerning the principal already
represented. Thabo should be Global Trade Solutions (Pty) Ltd. for his adverse action of
exceeding power and entering dead contracts.
