Agency Case Law Exam Revision

Question 1

Creation of an Agency Relationship

5 Ways it can be created

Answer 1

1. Express (written, oral)
2. Implied (law, actions/conducts of parties)
3. Ratification (conditions!)
   - Kelner v Baxter (1866)
   - Keighley Maxstead & Co v Durant (1901)
4. Holding out
   - Hayman v American Cotton Oil Co (1907)
5. Necessity (emergency, impossible to contact the principal, good faith)
   - Couturier v Hastie (1856)
   - Sachs v Miklos (1848)

Question 2

Authority of an Agent

4 Authorities

Answer 2

Actual (real) authority

Express (written, verbal)
-Ireland v Livingston (1872)

Implied (by law, by the behaviour of the principal/agen)
-Hely-Hutchinson v Brayhead Ltd (1968)

Ostensible (apparent) authority
-Freeman & Lockyer v Buckhurst Park Properties (Mangal) Ltd (1964)

Question 3

Duties of an Agent

5 Duties

Answer 3

1. Obey the instructions of the principal
   - Gilmour v Clark (1853)
2. Exercise skill and care (member of a profession or trade or not …)
3. Act in person (exceptions)
   - Black v Cornelius (1879)
4. Keep proper accounts
   - Tyler v Logan (1904)
5. Act in good faith / Avoid conflict of interest and secret profits
   - McPherson’s Trusties v Watt (1877)
   - Attorney-General for Hong Kong v Reid (1994)