Liability of the Agent of the Foreign Principal through the Lens of the Supreme Court Appraisal of Asafa v Alraine [2002] LPELR-570(SC)1 And B.B. Apugo v Ohmb (2016) LPELR-40598(SC)

Abstract

Agency law is an important aspect of commercial law, especially in international contexts where local agents act on the authority of their foreign principals. The continuous growing international commerce directly necessitates a robust legal framework to define the liability of local agents working for foreign principals. This article examines the liability of agents of foreign principals in Nigeria through the doctrinal analysis of the landmark cases Asafa v Alraine and B.B. Apugo v OHMB. The paper commences by defining agency relationships and discusses the general principles of liability in agency law. It then focuses on the unique liability regime applicable to agents representing foreign principals, where the agent may be held personally liable even when the principal is disclosed. We also undertook a careful analysis of the Supreme Court's decisions in Asafa v. Alraine and B.B. Apugo v. OHMB, highlighting the implications of joint liability of both the agent and the foreign principal. The article critiques judicial reasoning and compares it with established legal principles in other jurisdictions, therefore suggesting the need for legislative reforms that will provide greater clarity and coherence in agency law and aid international commerce. Additionally, the article provides a comparative analysis with Indian law with the aim of emphasising the need for a nuanced approach to the right application of the principle. The thesis of this research is that the legal framework set by the judicial precedents are unclear and the agent’s liabilities have not been rightly appraised.