10: The Law Of Agency Flashcards
10.2: What is an Agency ?
The relationship that exists between two people: the agent and the principal
10.2: what is the purpose of an agency ?
To form a contract between his principal and a third party
10.2: what is a third party ?
Are everyone with whom the agent deals with, on behalf of the principal
10.2: what is an example where an agent is an employee of the principal?
A person on the checkout till is acting as an agent for the supermarket company making contracts with customers for the sale of goods
10.2: what is the key concept of an agent?
An agent represents the principal, creates legal relationship between the principal and third party
10.4: what authority can an agent have ?
Actual Authority
Expressed
Implied
Apparent
10.4.1: what is Express Actual Authority?
Authority expressively given by the principal
10.4.2: what is implied actual authority?
Where the authority to act on behalf of the principal is inferred from the conduct of the parties and the circumstances of the case.
- Eg: Hely-Hutchinson v Brayhead Ltd
10.4.3: What is Apparent Authority?
Arises from representation ( either expressed or via conduct) made by a principal to a third party, that an agent has authority to act on his behalf, when in fact he doesn’t
- If the third party relies on the representation the principal will be bound by the actions of the agent, even though the agent has acted without actual authority
- Apparent authority may arise where a principal has previously told a third party that an agency has authority and has since then revoked that authority without informing the third party or when an agent has ever had authority
Eg: Freeman & Lockyer v Buckhurst Park Properties Ltd, Racing Uk v Doncaster Racecourse and Doncaster Metropolitan Borough Council
10.6: What is the general rule
