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IIQE Paper 1 Legal Principles question: carrier sells the fruit to save

IIQE Paper 1Legal Principles

A carrier holds a cargo of fresh fruit that is rotting at port. The owner cannot be contacted, so the carrier sells the fruit to save its value. The carrier is acting under:

A agency by estoppel
B apparent authority
C authority of necessity
D express actual authority

Show the answer and explanation

Answer: C. authority of necessity

Answer: authority of necessity. Where property is in imminent jeopardy and the owner cannot be contacted, the person who must act has an authority of necessity and becomes an agent of necessity.Why not the others:• agency by estoppel: Estoppel needs the principal to represent another as his agent.• apparent authority: Apparent authority comes from the principal's manifestation to third parties, not from an emergency.• express actual authority: The owner gave no instruction; he could not be contacted.Watch out: Missing the two triggers: imminent jeopardy and no way to communicate.Rule: Authority of necessity: urgent jeopardy to another's property or interests, and no opportunity to communicate with him.Source: IA P1 Study Notes, 2024 Edition (8th ed., Nov 2024; for exams from 17 Feb 2025), 2.2.3(c), p. 2/7-2/8

Common mistake

Missing the two triggers: imminent jeopardy and no way to communicate.

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Original study material written to the public IIQE Paper 1 syllabus. Independent, not endorsed by the Insurance Authority or the VTC. Verify figures and rules against current guidance before relying on them.