PRIFYSGOL ABERYSTWYTH UNIVERSITY
DEGREE EXAMINATIONS 2012
DEPARTMENT OF LAW AND CRIMINOLOGY
COMMERCE AND RISK (LA31810)
Time allowed ONE AND A HALF hours
Answer TWO questions
Candidates are not permitted to bring any books, notes or any other materials into the
examination.
1. Answer (a) and (b)
(a) Albert is an electrical engineer employed by Greenlight Ltd which has been
contracted to build a wind farm near Aberystwyth. Albert telephoned Simon, who is the sales
co-ordinator of Plasto Ltd, to ask for a quotation for cables on behalf of Greenlight Ltd.
Albert introduces himself as an engineer of Greenlight Ltd. Simon faxes the quotation of
£13,476 to Greenlight Ltd for the attention of Albert. One week later Simon telephones
Greenlight Ltd to find out whether the quote was acceptable and asks the secretary who
answers the phone as to who is responsible for purchase orders and is told that it is Albert but
that he is on sick leave. Two weeks after that Albert telephoned Simon to confirm the order,
telling him that he would collect the cables that afternoon. In the afternoon Albert arrives at
Plasto Ltd‟s site in a van with Greenlight Ltd written on it, wearing a company uniform and
giving Simon the completed purchase order form signed by Albert on behalf of Greenlight
Ltd. Simon gives him the delivery order and the invoice, and Albert drives off with the
cables. When Plasto Ltd seeks payment from Greenlight Ltd, Greenlight Ltd refuses having
never received any cables. Albert who has since been dismissed, used to be responsible for
administering the orders, but not for making them.
Advise Plasto Ltd.
(b) Explain why the case of Watteau v Fenwick [1893] 1 QB 346 cannot be
accommodated within ordinary agency rules. Do you think it was wrongly decided?
Please turn over….
