Q.
Can a child of 9 years old act as an agent to source for a toy product for a principal who is involved in toy business?
This child while testing the toys in the supplier's premise caused an out burst of fire and damage was estimated to cost RM15,000 to the furniture of the premise. The supplier claimed against the child and the principal. Is there a case against a minor?
A.
This scenario is like a business which appoints a child (of minority age) to act on a particular task - in this case, to source for a toy - for trading. The child in return is paid a fee for the job done.
In agency law, is this a valid agency contract between the principal, the agent - child - and the third party supplier?
From Contracts Act, 1950, Who may be an agent
So, from the Contracts Act 1950 itself, a minor or a person of unsound mind cannot become an agent.
However, case law offers another perspective of thing.
Any person can become agent, including minors and unsound mind persons. However, they are not responsible for their act. The principal must be responsible and take the risks of their acts.
This was seen in Chan Yin Tee vs William Jacks & Co (Malaya) Ltd, 1964 MLJ 290.
Chan & Yong (minor) were partners in business. Chan told William Jacks (3rd party) that Yong is his partner and has authority to act on his behalf. William Jacks supplied goods to Yong but no payment was made.
William Jacks brought an action against Chan as a principal of Yong. It was held that Chan was responsible for Yong's act no matter he was an adult of majority age or a minor.
Hence, in the above case, both agent and the principal although were of minority age, did not result in avoidance of the responsibility to honor the agency contract.
According to this case, there is high probability that the Court will award compensation to the supplier based on the fact that the Child (minor) acted as agent to his Principal.
Ref:
Norazla Abdul Wahab, Law of Agency. Slides from Course Hero, available at
https://www.coursehero.com/file/13126749/LAW-OF-AGENCYppt/