Lesson Notes By Weeks and Term - Senior Secondary School 3

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  4. Law of agency

Term: 1st Term

Week: 4

Class: Senior Secondary School 3

Age: 17 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:    Commerce

Topic:-      Law of agency

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

  1. Explain the meaning of the law of agency and agents
  2. Describe how agents could be appointed
  3. Discuss the various types of agents
  4. Outline the duties of an agent to the principal and vice versa

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

PRESENTATION

TEACHER’S ACTIVITY

STUDENT’S ACTIVITY

STEP 1

INTRODUCTION

The teacher reviews the previous lesson on types of contract

Students pay attention

STEP 2

EXPLANATION

She explains the meaning of law of agency and agents.

She further describes how agents could be appointed

 

Students pay attention and participates

STEP 3

DEMONSTRATION

She further discusses the various types of agents and the duties of the agents to the principal and vice versa

Students pay attention and participate

STEP 4

NOTE TAKING

The teacher writes a summarized note on the board

The students copy the note in their books

 

NOTE

LAW OF AGENCY

Agency law governs the legal relationship between two parties in

which one gives the authority to act on their behalf to the other. The

party who acts for the other is called an agent. The party who gives the

agent authority is called the principal

 

METHODS BY WHICH AGENTS COULD BE APPOINTED

  1. Appointment: This is a statement by the principal authorizing a person to be his agent.
  2. Ratification: This happens when one person approves an act preciously done by another in the former’s name without authority.
  3. Estopel: This is an agency which arises when a person by word or conduct leads another person to believe that a third party is his agent or has the authority to execute particular acts.
  4. Necessity: An agent arises by necessity when an unforeseen emergency occurs. For instance, the driver of a bus operation between Lagos and Maiduguri may pledge his principal’s credit. In order to have needed repairs and may thereafter send the bill to the bus owner for settlement.
  5. By Implication: The circumstance of the situation may warrant a principal to appoint an agent by conduct or implication, but not in writing. In this case the person finds himself in a position where his services are accepted as an agent.

 

TYPES OF AGENTS

  1. Brokers: Brokers are commercial agents who link their principals with potential buyers. They just search for potential buyers and link them up with their principals.
  2. Universal Agent: A universal agent is not restricted to any line of goods but is authorized by his principal to enter into all sorts of business transactions on the principal’s behalf.
  3. General Agents: This type of agent has authority to represent his principal in all matters relating to a particular business.
  4. Jobber: This type of agent buys from his principal and sells on his own behalf rather than on behalf of his principal.
  5. Factor: A factor is a commission agent who sells goods on behalf of his principal.
  6. Del-Credere Agent: This type of agent sells goods on credit on behalf of his principal and under takes responsibility for the collection of the proceeds of the sale. If the buyer defaults in payment the del-credere agent pays so that his principal does not suffer any loss.
  7. Commission Agents: This is an agent who is engaged by his principal to buy and sell goods at competitive prices on his behalf. Such agents are seen more in foreign trade and they deduct the commission due to them before remitting the cash proceeds to their principals.
  8. An Auctioneer: This is an agent who is licensed to sell the principal’s goods on auction to the highest bidders.
  9. Forwarding and Clearing Agents: These agents function more in import and export trade. They work at seaports and airports. Their duty is to do custom’s formalities and forward goods to the foreign importer on behalf of the home exporter. They also clear imported goods on behalf of the home importer and deliver the goods to the named destination of the importer.
  10. Advertising Agent: This is an advertising practitioner who advertises goods and services for his principal.
  11. Manufacturer’s representative: This is an agent who represents a foreign or local manufacturer in the marketing of the manufacturer’s goods.

 

DUTIES OF THE AGENTS TO THE PRINCIPAL

  1. Loyalty and good faith.
  2. obedience
  3. Properly informed about the subject matter
  4. Reasonable skill and diligence.
  5. Accountability and transparency

 

DUTIES OF THE PRINCIPAL TO THE AGENTS

  1. compensation
  2. Reimbursement
  3. Abide by the terms of the agency.
  4. Not to interfere with the agent’s efforts.
  5. To make available all facilities that will enable the agent perform his

duties satisfactory

EVALUATION:   1. Explain the meaning of the law of agency and agents

  1. Discuss the methods by which agents can be appointed
  2. Discuss the types of agents
  3. Outline the duties of agents to the principal and vice versa

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively