ABSTRACT

Agency relationship from its origin, presents situation where a person (principal) is bound by the acts of another (the agent) and he (the principal) takes the rights and obligations arising out of such relationship is therefore, an exception of the doctrine of privity of contract which generally disentitles a person from acquiring any right or obligation arising from any contract to which he is not a party. Agency relationship arises when a person is vested with authority by another to enter into a legal transaction on his behalf. The two basic ingredients for agency relationship are authority and consent. However, in the course of this research, the finding of the writer is that the doctrine of privity of contract disentitles a person from acquiring any right under or being subjected to any obligation arising from a contract to which he is not a party to the contract. Thus, a contract cannot confer enforceable rights or impose obligations arising under it on any person except parties to it, this event, further constituted a statement of problem of the research. In view of this, the objective of this research is to identify the basic rules of agency relationship vis-à-vis their adequacy or otherwise in practice. In this regard therefore, the research finally concluded by recommending that the law should provide an avenue for redress to genuinely affected persons who the strict common law interpretation of privity of contract might have deprived of such. Such that even a perfect stranger could be awarded damages if infringement is proved. The sources of information relied upon here are relevant text materials, statute, journals (both local and international), judicial authorities and e-materials.

TABLE OF CONTENTS Title Page – – – – – – – – – – i Declaration – – – – – – – – – – ii Certification – – – – – – – – – – iii Dedication – – – – – – – – – – iv Acknowledgement – – – – – – – – – v Table of Cases- – – – – – – – – – vi Table of Statutes – – – – – – – – – ix Table of Abbreviation- – – – – – – – – x Table of Contents – – – – – – – – – xi Abstract – – – – – – – – – – xiv CHAPTER ONE GENERAL INTRODUCTION 1.1 Introduction – – – – – – – – – 1 1.2 Statement of Research Problem – – – – – – 3 1.3 Aim and Objectives – – – – – – – – 4 1.4 Scope of the Research – – – – – – – 5 1.5 Research Methodology – – – – – – – 5 1.6 Literature Review – – – – – – – – 5 1.7 Justification of the Research – – – – – – – 9 1.8 Organizational Layout – – – – – – – 10 CHAPTER TWO CONCEPTUAL CLARIFICATIONS 2.1 Introduction – – – – – – – – – 12 2.2 Meaning of Commercial Law – – – – – – – 12 2.3 Meaning of Agency – – – – – – – – 13 2.4 Authority – – – – – – – – – 18 2.4.1 Types of Authority – – – – – – – – 19 2.5 Types of Agent – – – – – – – – 21 2.6 Other Types of Agent – – – – – – – – 31 CHAPTER THREE THE SCOPE OF AGENCY RELATIONSHIP 3.1 Introduction – – – – – – – – – 34 3.2 Capacity to act as Principal – – – – – – – 35 3.3 Capacity to be appointed as Agent – – – – – – 38 CHAPTER FOUR DUTIES, RIGHTS AND OBLIGATIONS OF AGENTS 4.1 Introduction – – – – – – – – – 39 4.2 Agent’s Duties to his Principal – – – – – – 39 4.2.1 Duty to Obey Instructions of the Principal – – – – – 40 4.2.2 Duty to Exercise Due Care and Skills- – – – – – 41 4.2.3 Duty to Act Personally – – – – – – – 43 4.2.4 Duty to Act in Good Faith – – – – – – – 45 4.2.5 Duty to Account – – – – – – – – 48 4.2.6 Duty of Respect Principal’s Title – – – – – – 49 4.3 Right to the Agent or Duties of the Principal to the Agent- – – – 50 4.3.1 Right to Remuneration – – – – – – – 50 4.3.2 Right to Indemnity and Reimbursement – – – – – 53 4.3.3 Right to Lien – – – – – – – – – 55 CHAPTER FIVE BREACHES OF OBLIGATIONS AND REMEDIES AVAILABLE TO AGENT AND PRINCIPAL 5.1 Introduction – – – – – – – – – 57 5.2 Breaches of Obligations – – – – – – – 57 5.3 Remedies available to the Principal – – – – – – 59 CHAPTER SIX SUMMARY AND CONCLUSION 6.1 Summary of the Research – – – – – – – 63 6.2 Findings – – – – – – – – – 65 6.3 Recommendations – – – – – – – – 66 6.4 Conclusion – – – – – – – – – 67 Bibliography – – – – – – – – – 69