A bus driver operating between Lagos and Jos pledged the owner's credit in Benin in order to have the engine repaired and the bill sent to the owner.This is...

Assessment: JAMB UTME - Commerce - 2000 Subject: Commerce

Question 1 Report

A bus driver operating between Lagos and Jos pledged the owner's credit in Benin in order to have the engine repaired and the bill sent to the owner.This is a case of
Answer Details
This is a case of "agency by necessity". The bus driver, as an agent, was faced with an urgent and necessary situation that required him to take action on behalf of the owner. The engine needed to be repaired to continue the journey, but the owner was not present to authorize the repair or provide payment. Therefore, the driver had to pledge the owner's credit to have the engine repaired and avoid further delay. This action was taken in the best interest of the owner, and the owner is bound by the driver's actions since they were necessary to carry out the business.

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