Agency Flashcards
What is agency?
The relationship where on party (agent) acts and forms contracts on behalf on another (principle)
Is the agent bound by the contract?
No but the principle must have full contractual capacity
How can consent be given for agency?
Express or implied orally or written
What is agency by estoppel?
Words or conduct of principle give a third party the impression that the person purporting the contract is an agent of the principle and the third party acts upon it
Or when authority withdrawn but 3rd party not told
What is agency of necessity?
When faced with an emergency which puts the property or interests of another person in imminent jeopardy and must act to preserve it
What needs to be shown to prove agency of necessity?
Agent had no way of contacting the principle
Actions arose from pressing need for action
Acted in good faith
Actions reasonable and prudent
Prior contractual agreements
What is ratification and when can something be ratified?
Validating past actions to create an agency relationship retrospectively
Principle was in existence at the time of the act
Principle had the legal capacity to make contracts at all times
Agent identifies the principle at the time of making the contract
Occurs in a reasonable time
Must be expressed sufficiently clear intention
What are the duties of an agent?
Accountability - provide full information of agency transactions and account for all monies arisen
No conflict of interest - not put himself in situation where own interests conflicted
Performance - contractual obligation to perform agreed task
Obedience - act in accordance with the principle’s instructions as long as legal
Skills - maintain standard of skill and care
Personal performance - no delegation
Confidence - keep in confidence even after relationship ceased
What are the rights of an agent?
Indemnity - entitled to be repaid his expenses and indemnified against losses and liabilities
Remuneration - be paid agreed remuneration
Lien - hold goods pending payment for them to him
What is actual express authority?
Given authority by consent
What is actual implied authority?
Given authority by job title
What is ostensible authority?
Given authority by the principle expressly or by inaction - apparent 3rd party
What is the liability for an agent who had authority and was known to be an agent?
3rd party - may sue and be sued by principle
Principal - may sue and be sued
Agent - none
What is the liability for an agent who had authority and was not known to be an agent?
3rd party - choose to sue principal or agent
Principal/agent - may sue on contract
What is the liability for an agent with no authority?
3rd party - no rights against principal, claim against agent
Principal - none
Agent - potential liability under tort of deceit breach of warranty of authority
