Business/commercial law essay question and answers

Harry and Thuku agreed to meet for a business lunch at a restaurant in town. During the lunch, Chuma one of Thuku’s friends joined the two and began to participate in the discussions. Chuma told Harry that he was Thuku’s agent to which Thuku did not object.

A week later, Chuma obtained goods on credit from Harry, allegedly on behalf of Thuku.

Chuma has since disappeared and Harry is demanding payment from Thuku.

Advise Thuku. (10 marks)


• This problem is based on agency estoppels

• In this case it is apparent Thuku represented Chuma as his agent and Harry subsequently dealt with Chuma as Thukus agent. Thuku cannot be heard to say that Chuma was not his agent. He is estopped from so denying and is liable. My advise to Thuku is that he is liable to Harry. My advise is based on the decision in Freemans case.

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