Assignment No.4MAGU Ltd is a company incorporated in Kenya carrying out business of Agency banking...

Question

Assignment No.4MAGU Ltd is a company incorporated in Kenya carrying out business of Agency banking within East Africa. MAGU Ltd entered into a contract with Kenya Commercial Management Bank to offer its services to its customers under its trade name KCMB mtaani.MAGU Ltd has engaged 13 employees to offer such services to KCMB clientele.Mr.Simons,one of the employees in Kibindoni town collected cash on 13th August 2012 as deposits from clients but failed to remit the same to the management of MAGU Ltd.Mr.Simons is currently at large and the management of MAGU Ltd does not know what to do the money not having been credited to the customers account and under increasing pressure from KCBM to account for the deposits. The management has approached you for your wise counsel with regard to the incident. Offer you advise bearing in mind principal-agency relationship between MAGU Ltd and KCBM.Instructions:1. Students advised to read law of agency before handling the question2. Assignment carries 10 marks.

Robert · Accepted Answer

Assignment No.4 
As MAGU Ltd in the contractual relationship of Agency with the Kenya Commercial 
Management Bank under the trade name of KCMB mtaani, thus MAGU Ltd. should be liable to 
follow the legal norms and regulations regarding the Principle –Agency act. Under the legal 
regulations of Agency act certain duties of agent against principle is clarified, which comprises: 
duty to perform the task or tasks specified within the terms of agency, duty of accomplishment of 
task responsibilities with care and due diligence and maintain loyalty towards principle, 
avoidance of conflicting interest of principle and agent, and communication of actual, correct 
and complete information about any issues relevant to principle’s interest.

Assignment No.4 MAGU Ltd is a company incorporated in Kenya carrying out business of Agency banking within East Africa. MAGU Ltd entered into a contract with Kenya Commercial Management Bank to offer...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment