132317- BCOM GROUP C-BUSINESS LAW.docx - BCOM GROUP...

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BCOM GROUP C-132317 Issue for determination The issue at hand is whether Ms. Karita is liable for the credit amount for the dresses she took owed to her by Ms. Mwikali after paying the former agent of Ms. Mwikali. Rule of law applicable The law applicable is the Law of Agency specifically Agency by Estoppel. It states that when a party falsely represent another person as his/her agent by word or conduct to a third party and the third party relies on this representation and comes to enter a contract with the person, the falsely represented person will be the agent of the principle/representor and the principal/representor is estopped from denying the apparent agency. Applications of law to the facts given. Ms. Mwikali represented Ms. Safi as her shop manager by conduct. Ms. Mwikali did not alert her customers concerning the termination of her shop manager hence Ms. Karita was not aware

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