Agency

Question 1

agency meaning (3 people)

Answer 1

Agent: a person who acts on behalf of another (known as the principal)
There is a tripartite relationship> PA3.

Question 2

maxim

Answer 2

“Qui facit per alium facit per se” maxim: he who has done something through something through another does it himself.

Question 3

formation of relationship

1 case

compensation = no compensation

Answer 3

written
oral
implied from conduct ( collen v marywright and others)

Compensation of the agency is not a determinant of the duty’s agent owes to the principal. E.g., gratuitous agents.

Question 4

types of agents (5)

1 case

Answer 4

1. Universal agent- unlimited authority to act on behalf of the principal e.g., CEO by the company, general power of attorney.
2. General agent-
   Watteau v Fenwick (1893)- 3rd parties are entitled to assume that the general agent’s actual authority and his usual (customary) authority are one and the same.
3. Special agent- limited mandate by the principal. E.g., special power of attorney.
4. Del credere agent: middlemen take responsibility to make sure that payments are made; they guide loss.
5. Mercantile agent/ commercial agent: commercial activities for the principal and are paid a commission.

Question 5

scope of authority (3 types)

classification and types of authority (3)

Answer 5

scope of authority:
express: Bound all instances within the course of employment and authority conferred in contract

Implied terms- authority to do everything necessary and ordinarily incidental to the authority exercised

warrant of authority; holds himself out as agent principal

classification and types of authority:

1. apparent - estoppel through principla’s conduct
2. presumed - law
3. real (writing, implied, customary)

Question 6

formation of agency (5 OF THEM)

1
1(3) - I CASE 
1
1(5)- 2 CASES 
1(4)- I CASE

Answer 6

1. Express agency – agent must seek expressed term from principal on what to do.
2. Implied agency –
   a. Reference to past course of dealings- Murfitt v royal insurance co. 1922> If the insurer continuously adopts temporary oral contracts entered into by its agent, then this will confer implied authority on the agent.
   b. Reference to specific law and practice
   c. Wife as implied agent/agency inferred from cohabitation – rebuttable by proving that there was an express warning not to do it on behalf of the wife or husband. Or, proving that they were adequately supplied with goods to support her living.
3. Agent of estoppel – conduct of a party would estop them denying the existence of a particular existence of a fact.
   The conduct of the principal (lack of it, means estoppel may not exist), would create an expression that there is an agreement of the agency. And where it would be unjust to 3rd parties for the principal to be allowed to escape responsibility.
   The law in this case is estopping the principal.
4. Agent by ratification:
   Has retrospective effect.
   a. Contract must be void – Ashbury railway carriages v riche (1875)
   b. Ratification must be within reasonable time
   c. Act must still be possible – grover and grover v Mathews (1910)
   d. Awareness of material facts -
   e. Undisclosed principal
   Principal cannot choose the parts of the contract that favor them and repudiate the ones that are not beneficial to them. This is when they are ratifying. Either the whole or not ratify at all!
5. Agency of necessity:
   Origins: maritime times when it was difficult to communicate with principals at shore when the ships wrecked, or other emergencies occurred. Therefore, requiring agency to act swiftly!!!
   Arises when one was compelled by emergency to exceed their scope of authority.
   Already existing relationship, but that relationship is limited. But due to exigencies that have risen, it has become necessary for them to exceed the authority expressly conferred on them by the principal.

Key features:
1. Pre-existing agency relation between the parties
2. Must have been impossible for the agent to communicate with the principal
3. Agent must demonstrate that they acted in what they believe to be the principal’s best interest
4. Demonstrate that the situation called for immediate action on the agent’s part to preserve the goods or property of the principal – real emergency.
Purported emergency= no agency of necessity exists.

Great northern railway company v swaffield (1874): The plaintiff company agreed to deliver the defendant’s horse to a particular railway station. However, on arrival, there was no one to take possession of the horse on his behalf. Accordingly, the plaintiff’s stationmaster sent the horse to a nearby stable. Subsequently, the plaintiff paid the stableman his charges. It was held that the plaintiff (acting as an agent) had satisfied the four criteria and was therefore entitled to recover from the defendant (principal) its expenses.

Question 7

duties of an agent to principal (4)

Answer 7

1, due diligence

2. no delegation of authority given
3. no secret profits
4. keep principal informed

Question 8

duties of principal to agent (2)

consequences (2)

Answer 8

1. remunerate
2. indemnify in case of incerred loss that agency covers

consequences:

1. lien
2. claim liquidated damages

Question 9

termination

2 broad ways

Answer 9

1. the act of parties
   - agreement
   - renunciation
   - revocation
2. operation of law:
   - death
   - frustration
   - insanity
   - bankruptcy
   - performance by parties