Agency 5 Flashcards
What is lecture 5 about?
How does agent’s relationship with principal come to an end?
Termination by act of the parties
Termination by operation of law
Termination of commercial agencies
What are the effects of termination?
On parties’ rights and duties?
-what about the termination?
How can agency rels come to end, to some exrenr if ppl to enter into agen delib should be able to leabe delib, how can end without act of consent – go voer this slide if necc
(a) Termination by act of the parties?
Underlined for u the various forms of termination by acts of party, so can be
-What are the various forms of termination?
termination by agreement
termination by performance
expiration of period of agency fixed period based on agreement fixed period based on custom Dickenson v Lilwal (1815) 1 Stark 128 Usage in Irish provision trade regarding expiry of authority given to broker to sell
occurrence of a specified event
revocation/renunciation
- what is termination by agreement?
termination by agreement- parties agreed that term come to end , I enter agree that our term ends today or months time etc
- What is termination by performance?
Term by performance- without agree- we have given agent partic brief to do something and done it then then that agen can come to end automatically, so if I have isntruced someone 1 to sell my bbaskin textobook once sold then our rels come to end, they FULFILLED FUNCTION?
- what is expiration of period of agency?
Expiration of period of agency- u can have agency rel for fixed period e.g this agency rel going to last up to 2020/ 2 years and up to them not agent anymore,-
- fixed period by agreement quite straight forward, but also based on custom which applies on partic trade. This tends to be less usual but clearly when based on custom then this is quite outside anything party would have agreed themselves,
e. g of this Dickenson case- here u have principles they isnturcted their agent to sell butter for them and gave on 3rd and 4th of july so they give instruction as this agent happens to be broker and remember broker can sell without haveingpossesion of goods, so on 6th july this broker found people to buy butter and sold, by time went back to p to say found, theys aid we also have sold and we cant deliver to ur buyer, dick sued p u should honour that contract with agent, and p argument was actually this was agency agreement, which came to end at end of fixed period based on custom. So by time our agent sold tutotial, his auth to sell anything had expired, based on custom end bc any auth thata egtn had to sell for u aexpired on day given. Need to privde proof evidence In that partic custom. Couple days later already expired??
How can it also expire?
Also possible for a to expire on occurrence of specified event- lasr until specific event occurs (rels( e.g u are going to be my agent up until price of cotton goes up, or ur going to be my agent up until my business changes ownership , needs to event specified so both aaware whats gonna bring to end.
How can it also end?
- end on bases of revocation /ren- these have same effect- revoc- cos principle has terminated agency rels unilateraly by revoking agency auth- if take away auth act on me have revoked and terminated rels, renun when unilateral termin come from agent, can renounce ur auth to act for some1= rels comes to end
(a) Termination by act of the parties – revocation/renunciation
Can agency be irrevocable?
Question on revoc and renun is – read on slide q – can oru p an a put self in positon where the agency can never be revoked e.g agency rel permanent, none of us csan withdraw
We have to approach by two angles 1 can we have ana gency rels that irremovable by virtue of stat, 2 can we have an agency rels that irrevocable by virtue of common law
statute s.4(1) Powers of Attorney Act 1971 (Baskind, p.183)
Statute- don’t get too bogged but worth knowing some rels are irrevocable by virtue of stat and s.4 (1) gives good e.g of that type agency that irrevolble by virtue of statue- baskin gives other examples e.g where u have some1 who has been given power of attorney under the mental capacity act to act for some1 who going to be incapacited etc – reason why complic- cos very foten this ag would have ebeen given auth to act for some 1 but at same time agent wil also have interest of some kind in the partic trans, area of law which is quite messy = stat it is poss for agency rel be irr- cany withdraw a auth
what does comon law say?
-common law poss?- statement grom bailey case – read aswritien -1 OF BIG JUDGEMENTS – lay down genral rule, , 1 principles laid down, is that agency auth is revo- so even if parties have contract irrevocable p can still revoke it is not set in stone- if do, this doesn’t prevent a from suein damages but it doesn’t change p right to revoke that auth, so parties may have contracted is not absolutely bidning, that’s our starting pont IT IS REVOKABLE
- when can auth of a be revoked and case?
‘the authority of an agent may be revoked by the principal, even if it is agreed by their contract to be irrevocable’ Bailey v Angove Pty Ltd [2016] UKSC 47
-sit where revoke might be awkward and case?
THERE MIGHT sit which very awkard for p to revoke agency especially where a is exposed to liability 3rd parties e.g so if Kelly given auth toact as agent ansd she revokes , ut im accountable to 3rd aprties, the obligations that Kelly should have been honoured, should she,
Anderson case- freq placing ebts on behalf of pri and even tho own name those bets I favour of p’s. mr anserdosn loses on some bets, but before mr Anderson makes good, he rovkes mr read auth so mr read as agent has auth revoked befoe his p actually paid money for lost bet, this means that mr read as agent is now exposed to claims of 3rd parties for those lost bets, u have to pay us the moneys owing o those best u placed cos lost bets and mr read – money that should come out ofwn pocket, no readon agent should be it and claimed indemi for loss debts compensate me. Cout inclied to agree ewith him. If p revoked agent auth and leave a highd ry then that cannot be revoked (auth) otherwise all to easy far too easy for p to avoid obligations by revoking auth anytime they choose.
Read v Anderson (1883-84) LR 13 QBD 779 in short?
Read v Anderson (1883-84) LR 13 QBD 779
R placed bets on A’s behalf in own name. A revoked R’s authority. R sued for indemnity for lost debts.
‘If a principal employs an agent to perform an act, and if upon revocation of the authority the agent will be by law exposed to loss or suffering, the authority cannot be revoked.’
(b) Termination by operation of law ?
Op of law term- indepednntly of any act/desire or consent of parties how does agency rels come to end
Obvs
death?
Death- if 1 parties died partic p that will bring to end as a as no one to act for. This can be awkward if as the agent u have not been paid ur comm are us till entitled to it where u have eprofmed partic acts and ur p no longer there to rem u-
death case?
Campanari v Woodburn (1854) 15 CB 400: C to sell W’s picture, and receive £100. Picture sold after W’s death, was C still entitled to commission?
-
camparani case in my words?
u- campanari- eman to sell makes best efforts to sell and only maanegd to sell when died, no aware p died, so by goes round to claim persmission, he aint ther, can he claim?, no this was sit where agents auth had been revoked by act of god, noones fault therefore cant be held acoutnable for comm- baskind make distin btw dissolution and bakrup as term acts by op of law- textbook put together, soe.g our p or a is a business that’s through partnership/company and that entity is dissolved, does that a rels come to end, is that a rels terminated by op of law if 1 of the parties busieness entites is dissolved effectively, short answr yes the agency rel will come to end. Histrociall y tend be distinc btw is it the p dissolved or is it agetns dissolved but increasingly rh assumption orbeleif where 1 parties busiens entity been dissolved where cant carry on business before they effectively cease business ceased trading then agency rels term operation fo law without consciously terminating
dissolution?
-likewise if ur p becomes bankrupt or insolvent does the a rels come to end, so with diss, dissolution is cese trading, ppl can cease trading even if not broke necc whereas bank rp insolvency if our p /agent are in postio where finacialy unable to pay debts keep going, can u say term by op of law and short answer is – yes does come to end cos p cant do nothing restricting on fincial abilities. If it’s a insovleny- if clear agent cant continue and typical cant so if so then will come to end.
mental incapacity and case?
mental incapacity
Drew v Nunn (1879) 4 QBD 661: ‘where such a change occurs as to [P] that he can no longer act for himself, the agent whom he has appointed can no longer act for him’
- mental incapacity and case? in my words?
mentally incapacity?- drew v nunn –controversial deci- mr nunn while hwas still in full control fo fac allowed goods to buy wife o credit frew from mr drew, she was eventualy hospitalised, mental hos he, while wife continued to enter contracrs, he argued wife had pledged him when he was contract, he was no tbound , cos point when ill wife should have stop it term, 2 strands, 1 appointef for yes willing to accept whatever auth wife had before came ill was term ocne became ill term when came clear couldn’t act for self then she couldn’t act fr him. – mr nun still liable on basis she had not lost her apparent auth, so basis of actual auth terminated by law she lost actual auth she wasn’t bound but far cour concerned while he was hil she didn’t ose apparent mental didn’t affect, bc surely he would held out wife auth to act for hm, so bound to pay not actual auth but not apparent auth , that continued.- messy
frustration & case ?Marshall v Glanvill [1917] 2 KB 87
- Agency rel come to end by op law furstion- where a frusted event occurs make the erofrmance of that contract imposs.so what kind of act takes performance of contract out of ahnds of parties. Frustration has arisen- marshal- mr marshall appojted as rep of mr glanvil busiens in west midlands, puled up fro mil services, the judgement isn’t ta clear about this but clearly this was during 1st world war so dotn refer dricel to war, but rusting event contract could noo longer be , terminate dcompletele.
