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ACCA Applied Skills · Corporate and Business Law (Global) · Agency law

Delta Ltd appoints Kiran as its sole sales agent in a foreign region and gives him a written power to sign sales contracts for any value. The appointment is expressed to cover all dealings with customers in that region. Which type of agent is Kiran?

Kiran is a general agent. His authority is continuing and covers all dealings of a given kind with customers in the region, rather than a single transaction or an emergency situation without instructions.

  1. AA general agent, authorised to act in all transactions of a particular kind or in a businessCorrect
  2. BA special agent, authorised only for a single specific transaction
  3. CAn agent of necessity, whose authority arises from an emergency

Explanation

A general agent has continuing authority to act for the principal in a range of transactions of a type or in a particular business. Kiran's authority covers all customer dealings in a region on an ongoing basis. A special agent is appointed for one transaction, and necessity arises only without prior authority in an emergency.

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