On 31 December 2012, Smith Lemaiyan, appointed Aggrey Mchuzi as his money-lending agent. In January 2013, Aggrey Mchuzi without Smith Lemaiyan’s authority advanced Sh.100,000 to Jimmy Cheney without disclosing to Jimmy Cheney that lie was Smith Lemaiyan’s agent. Jimmy Cheney has since refused to refund the Sh.1 00,000 advanced to him. Analyse the legal principles applicable in the above case and advise Smith Lernaiyan, Aggrey Mchuzi and Jimmy Cheney on their liability.

Legal principle applicable in the case Smith Lemaiyan is an undisclosed principal. Jimmy Cheney is a third party. Since Aggrey Mchuzi (the agent), has contracted/lent money in his own name, he is liable to jimmy Cheney personally. If the third Read More …

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