Ostensible authority and estoppel in the law of agency in view of Makate v Vodacom

Abstract

This dissertation examines the place of agency law in the South African context. The dissertation is premised on the idea that the principles governing agency, such as binding the principal for the conduct of her agent, are derived from English law. With that starting point, the paper examines the English law, in order to place the South African law of agency in context. The dissertation is not a comparative study and the discussion of English law of agency is limited to providing context to the development of agency law in South Africa. The dissertation further discusses the differences between the principles of estoppel and ostensible authority. The theoretical basis for agency and its practical effects are examined. Both the majority and minority judgments of the court in Makate v Vodacom are discussed and the rationales thereof examined. The dissertation recommends the appropriate mechanism to be employed in holding the principal accountable without the need to evoke the traditional principles which have been proved problematic by the Makate case.