ACCA Applied Skills · Corporate and Business Law (Global) · Agency law
Kiran runs a manufacturing company. He appoints Lena to negotiate and conclude all sales of his goods in one region, for a commission, and she acts on her own business account for several manufacturers. Which term best describes Lena?
Lena is an independent commercial agent. She has continuing authority to negotiate and conclude sales for Kiran, is paid commission and acts for several manufacturers on her own account. She is neither unpaid nor appointed because of an emergency.
- AA general agent employed under a contract of service
- BAn independent commercial agent with continuing authority to negotiate salesCorrect
- CA gratuitous agent
- DAn agent of necessity
Explanation
Lena has continuing authority to negotiate and conclude sales for Kiran, is paid by commission and works for several principals on her own account, so she is an independent commercial agent. She is not gratuitous because she is paid. Agency of necessity requires an emergency, which is absent here.
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