Question

(a) Explain ""Doctrine of estoppel"" in agency contract?

(b) Luxury Marine Limited is a yacht dealer selling
top-of-the-line yachts. The corporation employs Andy is the general
manager and Billy

Answer 1

The doctrine of estoppel in an agency contract prevents a principal from denying a representation made by their agent that a third party relied upon. This means the principal is bound by the representation.

Step-by-step explanation:

The doctrine of estoppel in an agency contract refers to a legal principle that prevents a person from denying or going against a previous statement or representation they made. In the context of an agency relationship, this doctrine means that if an agent makes a representation on behalf of the principal and a third party relies on that representation, the principal cannot later deny the truth of that representation.

For example, if Andy, the general manager of Luxury Marine Limited, tells a potential buyer that a particular yacht has never been involved in any accidents, and based on this representation the buyer decides to purchase the yacht, Luxury Marine Limited cannot later claim that the representation was false. The doctrine of estoppel prevents them from doing so.

In summary, the doctrine of estoppel in an agency contract means that once an agent makes a representation on behalf of the principal and a third party relies on that representation, the principal is bound by that representation and cannot deny its truth.