Agency

Question 1

Mandatory and Agent: Agents normally receive payment or other rewards for acting on behalf of a principle.

Question 2

Gratuitous Agency is…..

Answer 2

unpaid agency

Question 3

Agency - mandate

Agent- M…

Answer 3

Mandatory

Question 4

The mandatory agent acts on an ______ basis

Answer 4

unpaid

Still owes a duty of care to the principle- he or she cannot use that they were unpaid as any claims

Question 5

Agent owes duty of care to the principle even if they are unpaid

Question 6

Agent even if unpaid still owes durty of care to the principle.

Answer 6

Case Law

Question 7

Del Credere Agents:
introduces third party to his principle and promises to idemnify or compensate the principle if the contract does not go as planned and the principle suffers losses as a result.

Answer 7

Del Credere Agents

Question 8

General Agents:
Acts for the principle in connection with all of his interest in a partyicular line of business. (solicitor, comany director, partner in a partnership)

Answer 8

They can posses both actual and ostensible authroity

Question 9

General Agent authorities

Answer 9

Actual and Obstensible

Question 10

Special Agent: has limited authority; usually acts for the principal in one type of transactions onl; estate agent. possess actual authority only

Answer 10

Actual Authority

Question 11

Agency Relationship; Things to think about; 
Capacity of the principle
The Creation of an agency relationshio
Authority of the Agent
Duties and responsibilities of the Agent
Termination of an agency relationship

Question 12

Capacity to the contract; the ability to do something- needs to be a contractual capacity.
Must be able to go into a contract with third parties

Answer 12

Not a person who lacks contractual capacity

insane or minor

Question 13

Lack of contractual Capacity;
Principle cannot use an agent to get round the problem of his lack of contractual capacity
Agent- wont undermine any agreemen that he may have egotiated bwteen the principle and the third party. (doesnt reallyy need contracual capacity)

Question 14

An Agent must act for a principal who exists- cannot act for someone who is not born or has died or a business that has been terminated…..
can have rights and duties under a contract; who is recognized by the court.

Answer 14

Case Law; Tinnevelly Sugar Refining look at this

Question 15

The Creation of an Agency Relationship
Express contract/creation
implied creation
Creation by holding out
Creation by Ratification
Creation by Necessity

Question 16

Express Agency

Agent Can be appointed by a way of

Answer 16

written contract; spells out clearly the agents powers and duties

Question 17

There is no legal requiremnet yet it is better for parties involvef; in the event of a dispute the rights and duties of the parties are much easier to identify

Answer 17

written partnership agreement

Question 18

Oral Agreement: partnership agreement

Question 19

Create Agency relationship; implied agency

can be implied by:

Answer 19

Law or actions and conducts of the parties

Question 20

Agency created by Law; every partner is an agent of the firm and agent of his fellow partners for the purpose of the business of the partnership.

Answer 20

Actions and conduct of the parties:
A persons occupation or job indicate that they are entitled to be regarded as an agent
e.g director….

Question 21

Agency by holding out: the creation of the agency

Answer 21

The principles actions allow or encourage third parties to belive that a person is acting as an agent on the principles behalf

Question 22

The principle may have made a statement to the effect that someone is to be regarded as their agent

Answer 22

The Creation of an agency relationship

Question 23

if the third party can show that they relied on the principles reputation the principle will be liable to the third party for ant agreement that the agent has negotiated

Answer 23

Agency by holding out

Question 24

Agency created by Ratification; occurs when the agent does something which they have not been _________ to do so

Answer 24

Authorized

Question 25

Ratification: the principal chooses to ratify or approve the unauthorized action of the agent: if the principal does not ratify the action- the agent will be…..

Answer 25

personally liable to the third party

Question 26

Agency by Ratification conditions:

Answer 26

1) Must disclose all material facts surrounding the contract so that the principal is fully aware of its liabilities

Question 27

Agency of Necessity:
in the case of an emergency, a person is deemed by law to have the authority to act as an agent for another party. however, it must be possible to contract the principle, as long as the agent of necessity acts in good faith to protect the interest of the principle he will not be held liable for any losses which his action may have caused.

Question 28

Authority of an Agent:
if an agent acts within the limits of his authority, any contracts he makes on the principals behalf is binding on both the principal and third party.
Actual Authority
Ostensible authority