Agency

Question 1

Define agency.

Answer 1

Agency is a relationship where an agent is authorised to enter into contracts on behalf of a principle.

Question 2

What two types of authority are there? Case.

Answer 2

Actual authority; apparent authority - Freeman & Lockyer v Buckhurst Park Properties.

Question 3

What criteria give rise to apparent authority?

Answer 3

1. A representation from the principal that the agent had authority.
2. The third party changes position in reliance on the representation.

Question 4

What is the consequence of apparent authority?

Answer 4

The principal will be estopped from denying that the agent had authority. The principal may then claim against the agent for breach of the agency agreement, or in the tort of deceit (if the agent is an imposter).