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ASSIGNMENT QUESTION: Steve is an alpaca breeder and carer. He owns a large farm in Mundaring, Western Australia. As part of his services, Steve charges alpaca owners $100 per week to care for their...

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Steve is an alpaca breeder and carer. He owns a large farm in Mundaring, Western Australia. As part of his services, Steve charges alpaca owners $100 per week to care for their alpacas. For this amount Steve ensures that the alpacas are kept in a secure enclosing and feeds them as well as provides fresh clean water each day. At night Steve locks all the alpacas in his large barn.

One morning Steve notices that one of the pregnant alpaca is off its food and displaying respiratory problems and producing nasal secretions. Steve attempts to call the alpaca’s owner, Bianca, by calling the contact number left by Bianca when she registered her details. The telephone is answered by Bianca’s housemate who explains that Bianca has gone to Ecuador for 3 weeks and is uncontactable for that period.

Steve starts to explain to Bianca’s housemate about the alpaca’s condition but she hangs up and Steve is unable to get through again.

Steve decides to keep an eye on the alpaca and the next morning the alpaca is a lot worse and had contracted a fever and was dehydrated. Steve fears that the alpaca may be suffering from a disease known as Bovine Viral Diarrhoea (BVD) and he again tries to telephone Bianca but the phone goes unanswered. Steve rings the veterinarian who attends and confirms that the alpaca is suffering from BVD and had a prenatally infected five-month-old foetus, which had already died, and needed to be aborted via emergency surgery.

The veterinarian seeks Steve's permission and Steve agrees, knowing that without this surgery the alpaca will die. The alpaca is transported to the veterinarian’s surgery. The surgery is a complete success and the alpaca is back with Steve 3 weeks later. One day after this Bianca returns to collect her alpaca. Bianca is very pleased that the alpaca is alive but refuses to pay the extensive veterinarian’s bill and transportation costs adding up to $3500 and claims that since Steve authorised the surgery, he should be liable for its payment.


Advise Steve if he is liable for this $3500 bill or is there something Steve can argue to avoid this liability? (20 Marks)

Restrict your analysis to legal principles and cases covered in Agency Law only.

Answered Same Day Apr 11, 2020


Sundeep answered on Apr 14 2020
154 Votes
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Table Of Content:
Agent law ------------------------------------------------------------------------------- 3
Operation law -------------------------------------------------------------------------- 3
Who is Responsible ------------------------------------------------------------------- 3
Trick Points--------- ------------------------------------------------------------------- 4
Steve’s story-----------------------------------------------------------------------------4
Agent Law:
An agency is a relationship which is defined in which the agent (person) can create legal relations between another person (principal) and third parties
An agency is created by an agent in which an agreement is set out between the principal and the agent, the agreement defines what an agent is authorised to do, the location at which the agent is legally authorised to act in and the time when the agent is allowed to act in.
Operation Of Law:
It is used in a condition when an agent has to preserve the assets and property of the principal in-order to safeguard principal’s needs and interests. For this act to take place, there should be a danger level where it must be in interest of the principal for the agent to take necessary steps. Either the goods must be in danger of destruction, or some harm so that the agent does not have to ask permission from the principal. This act must be in true sense and honest and must be in full interest of the principal.( Tomasic, R., Bottomley, S., & McQueen, R. (2002). )
Who is responsible?
The agency is responsible in creating tha agreement between the agent and the principal
The agency is created by the operation of law. The responsibility...

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