Agent's Authority

Question 1

Freeman & Lockyer v. Buckhurst Park Properties (Mangal) Ltd 1964

Answer 1

‘A legal relationship between the principal and agent created by a consensual agreement to which they alone are parties’. Lord Diplock

Question 2

Lord Denning on Express Authority

Answer 2

‘Authority given by express words’.

Question 3

International Sponge Importers Ltd v. Watt and Sons 1911

Answer 3

Implied Authority/ Apparent Authority - Salesman took cheques made payable to himself. The court held these payments were valid, as the third party had no reason to suspect that they were invalid.

Question 4

Morris v. Statter 1885

Answer 4

Implied Authority - No additional scope of authority was given as he was a special agent.

Question 5

Lord Young on Implied Authority

Answer 5

‘He must act within the instructions given for the particular occasion, and does not bind his principal if he does otherwise’. Morris v. Statter 1885

Question 6

Mackenzie v. Cluny Hill Hydro 1908

Answer 6

Implied Authority - Authority is regarded as implied or usual if it is of the kind that a person in the agent’s trade or profession usually has.

Question 7

Lord Diplock on Apparent Authority

Answer 7

‘A legal relationship between the principal and the third party created by representation, made by the principal to the third party’.

Question 8

Bolton Partners Ltd v. Lambert 1889

Answer 8

Ratification - Offer of purchase was made by lambert it was then withdrawn after it was ratified by the principal. As the agent accepted the offer it was held performance should be carried out as it was made prior to withdrawal.

Question 9

‘A legal relationship between the principal and agent created by a consensual agreement to which they alone are parties’. Lord Diplock

Answer 9

Freeman & Lockyer v. Buckhurst Park Properties (Mangal) Ltd 1964

Question 10

Implied Authority - Authority is regarded as implied or usual if it is of the kind that a person in the agent’s trade or profession usually has.

Answer 10

Mackenzie v. Cluny Hill Hydro 1908

Question 11

Implied Authority - No additional scope of authority was given as he was a special agent.

Answer 11

Morris v. Statter 1885

Question 12

Ratification - Offer of purchase was made by lambert it was then withdrawn after it was ratified by the principal. As the agent accepted the offer it was held performance should be carried out as it was made prior to withdrawal.

Answer 12

Bolton Partners Ltd v. Lambert 1889

Question 13

‘Authority given by express words’.

Answer 13

Lord Denning on Express Authority

Question 14

Implied Authority/ Apparent Authority - Salesman took cheques made payable to himself. The court held these payments were valid, as the third party had no reason to suspect that they were invalid.

Answer 14

International Sponge Importers Ltd v. Watt and Sons 1911

Question 15

‘A legal relationship between the principal and the third party created by representation, made by the principal to the third party’.

Answer 15

Lord Diplock on Apparent Authority

Question 16

‘He must act within the instructions given for the particular occasio, and does not bind his principal if he does otherwise’. Morris v. Statter 1885

Answer 16

Lord Young on Implied Authority

Question 17

List the different types of agent’s authorities -

Answer 17

i) Actual
ii) Express
iii) Implied
iv) Apparent
v) Ratification

Question 18

List the 4 stages required for ratification -

Answer 18

I) principal must be competent.
II) principal must be aware of all material facts.
III) must take place within a reasonable amount of time.
Iv) agent must be acting in capacity for a disclosed principal.

Question 19

Grover ltd v Matthews 1910

Answer 19

the agent got insurance for a building or something and then the principal didn’t ratify it within a reasonable time and when the building caught on fire he tried to claim on the insurance. However, it was not within a reasonable time period.