COMPETENCY TO BE AN AGENT

CONTENTS

1.0      Introduction

2.0      Objectives

• Main Content
• Legal Practitioners
• Insurance Agents and Brokers
• Auctioneers

4.0      Conclusion

5.0      Summary

6.0      Tutor-Marked Assignment

7.0      References/Further Readings

INTRODUCTION

The rules governing the competency to be a principal are quite different from that governing the competency to be 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.

OBJECTIVES

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.

MAIN CONTENT

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 practitioner, be called to the Nigerian Bar and have his name enrolled in  the register  of the  Supreme Court of Nigeria.

The competence to be or do this is regulated by the Legal Education (consolidation, etc.) Decree No.13 of 1976, as amended. Under this law, a person is entitled to have  a  qualifying certificate issued to him b y 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:

• He is a citizen of Nigeria
• He produces a qualifying certificate to the Body of Benchers and
• Satisfies the Body of Benchers that he is of good

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 on the roll.

SELF ASSESSM ENT EXERCISE 1

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

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

• A minor
• A person of unsound mind.
• 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.

SELF ASSESSM ENT EXERCISE 2

1. To be    registered    as    an    Insurance    Broker,    no    particular    form    of registration is required. Do you agree?
2. State the     condition     for    cancellation     of    an     insurance     broker’s certificate.

Auctioneers

Generally, an auctioneer is a person who conducts a sale b y 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.

SELF ASSESSM ENT EXERCISE 3

To practice as an auctioneer, no particular qualification is required. Discuss.

CONCLUSION

Generally, legal practitioners as professionals are expected  to  act  on behalf  of clients  who are their principals. On the other hand, Insurance Brokers and Auctioneers,  though not professionals are also expected  to act  on  behalf  of  their  clients  who  trust  them  with their years of experience and the failure of these set of groups to  act  as  trustworthy agent  is  followed  with  necessary  sanctions  from  their  respective  regulatory bodies.

SUMMARY

By now, the learner must have been  able  to  distinguish  between  these sets  to agents  who are professionals in their own rights.

TUTOR-MARKED ASSIGNMENT

Differentiate the following types of agents

1. Legal practitioners
2. Insurance Brokers
3. Auctioneers

REFERENCES/FURTHER READINGS

Kingsley Igweike (1993). “Nigeria Commercial Law: Agency.”  Jos,  Nigeria: FAB Educational Books.

Walker,    D.W.   (1980).    “The    Oxford    Companion    to   Law.”   London: Butterworths.

American Restatements, Second, Agency, Article.

Friedman,    G.H.L.    (1984).    Law    of    Agency,    7th      Edition.    London: Butterworths.

Companies and Allied Matters Act (1990). Laws of the Federation of Nigeria.