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.”
ACT OF FRAUD BINDS PRINCIPAL WHEN AGENT ACTS WITHIN SCOPE OF AUTHORITY
A principal, whether disclosed or otherwise is in position to plead all defences available to him, but in the case of fraud, where the Agent acts within the scope of his authority, actual or apparent, the act of fraud on the part of the agent binds the principal. The same goes for an act of...