Agency has been defined in the case of SDV Nigeria Limited V Phillip Kayode Olusegun Ojo & Anor (2016) LPELR-40323 (CA), where Nimpar JCA, explained thus; “Agency is a relationship that exists between a principal and another called “agent” under which the agent has authority to act on behalf of the principal. Several authorities defined agency relationship, one of which is the case of OKWEIJIMONOR V GBAKEJI (2008) NWLR (Pt. 1079) 172 where the Apex Court held thus: “The general law relating to agency however , may be defined as the relationship which exists or arises where one person has the authority or capacity to create legal relations, i.e. the ‘agent’ who acts on behalf of another called the ‘principal’ whereby the latter undertakes to be answerable for the lawful acts of the former with a third party; provided it was done within the scope of his authority or ratified later by the latter. The fundamental element in agency relationship is authority of the agent to act on behalf of the principal.”
WHERE DIRECTOR ENTER CONTRACT FOR COMPANY, IT IS COMPANY WHO IS LIABLE
I have no doubt in my mind at all that as Chairman/Director of the 2nd appellant, the 1st appellant was in the eyes of the law an agent of the company for which he acted and the general principles of the law of principal and agent would generally have applied. Thus where a director enters...