COMMERCIAL LAW — Agency — Agent’s Liability — When Agent Exceeds Authority
Principle Statement
It is not in all situations that an agent will not be liable for the acts of a principal. An agent who has exceeded the limit or bounds of its authority as is alleged in this case, such agent will be liable.
Ratio Decidendi (Source)
Per GALADIMA, J.S.C., in Cotecna Int'l Ltd v. Churchgate Nig Ltd (2010) NLC-123-181-2004(SC) at p. 11; Paras B–C.
"It is not in all situations that an agent will not be liable for the acts of a principal. An agent who has exceeded the limit or bounds of its authority as is alleged in this case, such agent will be liable."
Explanation / Scope
This principle establishes that an agent who exceeds the bounds of authority is personally liable. The principle applies where an agent acts beyond authority. It ensures that agents are accountable for their actions. The principle reflects that exceeding authority makes the agent liable. It prevents agents from hiding behind principals. The court must determine if the agent exceeded authority. The principle provides guidance on agent’s liability.
