题目:
Sam was employed by Insurance Company as a financial advisor and was given business cards which clearly stated so. However, in reality, the company had employed him to sell life insurance policies and nothing else. Peter approached Sam and told him that he had just sold his house for R800,000 and wanted some financial advice on where he should invest that money for a profitable return. He told Sam he would be willing to invest the entire sum for a period of three years for capital growth.Sam advised Peter that he should lend this amount to Joe, who is a building contractor of some repute, and that he would most likely double this amount in three years time. He also promised Peter he would make sure Joe provided adequate security for the loan. Peter followed Sam’s advice.Joe’s business collapsed soon thereafter. It became insolvent and the most that Peter can get out of the security that Joe provided is R100,000.Required:Advise Peter if he has a case against Insurance Company in the law of agency. (10 marks)
答案:
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