Business Law

Mid-Term Exam

Subjective

Name: Syed Bilal Shujaat

ID: 18U00678

Sec: H

Q.1: Annie’s driver goes to a restaurant to place an order and pick up food for her. The driver does this
often. This time the driver orders some extra dishes that Annie did not ask for. Once Annie finds out
about this she refuses to pay for them, but the food has already been prepared. Will Annie be bound
to pay for the extra food? Explain. [5 marks]

Yes, Annie will be bound to pay for the extra food. In the given scenario we can see that the
driver of Annie was acting as an agent of Annie so according to the Agency Agreement the agent acts on
behalf of the principal, in this case the agent was the driver and the principal was Annie. According to
the agency agreement Annie is responsible all the actions of her driver because he is her agent and he is
acting on behalf of her.

Q.2: Promissory estoppel only applies in contracts where going back on a promise would be
inequitable. Use an example to explain this particular concept of promissory estoppel. [5 marks]

Promissory note applies even in the absence of the contract so that it stops the person who is
going back from it. An example of this can be taken as, a friend promises the other one that he would
buy him a drink if they reach there house in 10 mins and when they reach there within 10 minutes then
the friend is liable to pay for the other one’s drink and the other friend can not back off from that
promise.