Capacity to Act as Agent under the Law of Agency

Capacity of an Agent

The rules governing the capacity to be a principal are quite different from that governing the capacity to being an agent. The general rule here is that any person of age and of sound mind  may act as an agent of another person. Thus, the law permits the employment as agents of infants, drunkards, mentally ill persons, aliens and others who may be under natural or legal disability. Therefore, the competence of a person to act as an agent of another is not limited by the competence of that person to act for him in that regard.

However, in some instances, particularly in business, trades and professions, the law has placed limitations on the right to be or act as an agent. This is primarily to protect the general public from  loss  or  damage at the hands of unscrupulous, unqualified and inexperienced persons who may take advantage of the ignorance of the consuming public. The adequate understanding of this set of professionals as agents is the main objective of this unit.

Legal Practitioners

The general rule and belief is that a barrister or  solicitor is an  agent of his client in regard to a matter for which he has been briefed. The client for whom he acts as barristers or solicitor is his principal. For a person   to be legally entitled to be and to act as such agent, he or she must obtain the requisite qualification as a legal practical, be called to the Nigerian Bar and have his name enrolled in the register of the Supreme Court of Nigeria.

The capacity to be or do this is regulated by the Legal Education (consolidation, e.t.c.) Decree No.13 of 1976, as amended.  Under  this law, a person is entitled to have a qualifying certificate issued to him by the Council of Legal Education stating that he is qualified to be called to the Nigerian Bar if: He is a citizen of Nigeria. He has, except where the Council otherwise directs, successfully completed a course of practical trainings in the Nigeria Law  school for a period fixed by the Council.

A person is entitled to be called to the Nigeria Bar if, and only if:

       1.       He is a citizen of Nigeria

       2.       He produces a qualifying certificate to the Body of Benchers and

       3.       Satisfies the Body of Benchers that he is of good character.

       Once these conditions are qualified, the Body of Benchers is obliged to call him to the Nigeria Bar and             issue him with a certificate of call to the Bar. Upon being called to the Nigeria Bar, such person becomes entitled to practice as a barrister and solicitor in Nigeria, if and only if, his name appears in the roll.

A person is entitled to be an agent of another if he is a barrister or solicitor. State the conditions for qualification to practice as a barrister   or solicitor in Nigeria.

Insurance Agents and Brokers

Like the legal profession, insurance business is also regulated by a law. Section 28 of the Insurance Decree No.58 of 1991 provides in part as follows: No person shall transact business as an insurance  agent unless he is licensed in that behalf under this Decree.

An application for a license as an insurance agent  shall be made  to the Director in the prescribed form and be accompanied by the prescribed fee and such other documents as may be prescribed, from time to time. If the Director is satisfied that the applicant has satisfied the requirements as may be prescribed, he shall license the applicant as an insurance agent.

The following sets of people are not eligible to apply and may have his license cancelled if he has already obtained one.

        a)      A minor.

        b)      A person of unsound mind.

        c)       An ex-convict by a court or tribunal in the nature of a criminal appropriation of found or breach of trust.

However, the applicant may also be appointed as an insurance broker if the director is satisfied, inter alia, that the applicant has the prescribed qualifications.

Cancelation of License or Refusal of Renewal

Where the director is desirous of canceling a certificate of insurance or intends to refuse its renewal, the registered insurance broker must have, Knowingly or recklessly contravened the provisions of  this part  of the said Decree; or For the purpose of obtaining a license, made a statement which is false in a material particular; or been found guilty by a court of competent jurisdiction of fraudulent or dishonest practices including misappropriation of clients’ money

Materially misrepresented the terms and conditions of any policy or contract of insurance which he has sold to the clients or seeks  to sell to prospective clients.

Auctioneers

Generally, an auctioneer is a person who conducts a sale by auction for a client both before and of the position of an agent for the vendor i.e. the owner of the goods to be auctioned. Apart from the requirement of application and obtaining a license from the appropriate licensing authority, on the payment of any prescribed fee or such other fee as may be prescribed, no special qualification is  required by statute of one who wishes to carry on the business of or act  as an auctioneer. Such an application is made to the licensing authority for the area in which the principal office or place of business of the applicant is situate. A license may be granted to a firm or corporation. It is however an offence punishable by a fine for any person to carry on the business of or act as an auctioneer without such a license.

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