CAN AGENT OF A DISCLOSED PRINCIPAL BE HELD LIABLE IN A SHIPPING CONTRACT IRRESPECTIVE OF THE COMMON LAW POSITION AND THE INTRODUCTION OF SECTION 16(3) OF THE ADMIRALTY JURISDICTION DECREE (ACT) OF 1991

Abstract

The General Rule in a simple law of contract is that, the rights and liabilities of a disclosed principal by an agent when dealing with a third party is vicariously liable to his principal. This means that the principal may sue or be sued on any contract made or money received on his behalf by an agent when dealing with third parties in so far as he is acting within the authorized scope of his principal. By the provision of Section 16(3) of the Admiralty Jurisdiction Decree Act of 1991 which provides that the agent of a principal in a shipping contract will no longer escape liability based on the common law doctrine of acting on behalf of a disclosed principal. Simply put, they should be held liable for their act even when they are working or acting on behalf of a disclosed principal. This paper intends to examine the doctrine/principles in details and relate it with the duties and functions of an agent in a shipping contract. The aim is to agree or disagree with his controversies, with the sole aim of seeing whether the act posed a threat to the duties of an agent in performing his functions under the circumstances as the case may be.