Agents Flashcards
what is the scope of a general agent’s authority?
they have authority to act for the principal in all areas
what is the scope of a special agent’s authority?
they have authority to act in limited areas or for a specific transaction
what is the scope of a mercantile agent’s authority?
they have authority to negotiate the sale or purchase of goods on behalf of another person
what is the scope of a commercial agent’s authority?
they have authority to negotiate sale or purchase of goods on behalf of another person
what does an agent have to provide to be considered to be a del credere agent?
the agent provides a guarantee or indemnity to the principal of the third party’s ability to pay
MacKenzie v Cluny Hill Hydropathic Co 1908
the manager of a hydropathic company barricaded a woman in a room for 50 mins to resolve a dispute between the woman and 2 other guests. it was argued that the establishment wasn’t liable for the manager’s actions as it wasn’t within the scope of his employment. Held it was implied that the manager was an agent of his employer and so the company was liable for his actions
how is an agency expressly created?
by a deliberate and conscious act on the part of the principal to appoint someone as their agent. orally or in writing
how can an agency be created by implied creation?
the actions of the parties involved imply that this is what they actually intended to happen even though there’s no express appointment of the agent by the principal
what does ‘actual authority’ mean?
the authority actually exists and the agent had this authority when he acted
what does ‘implied authority’ mean?
that the exact boundaries of an agent’s authority have no been clearly recorded
Barry, Ostlere & Shepherd Ltd v Edinburgh Cork Importing Co 1909
Implied Authority
an order was placed by Barry, Ostlere & Shepherd with Edinburgh Cork for a supply of cork shavings. the order was placed via one of Edinburgh Cork’s salesmen. EC was accused of being in breach of contract when the order wasn’t fulfilled. defence was that the salesman had no authority to conclude the contract. held that Barry, Ostlere & Shepherd were entitled to assume that the salesman did have the necessary authority to accept the order
Panorama Developments Ltd v Fidelis Furnishing Ltd 1971
The secretary of Fidelis Furnishing incurred large bill with Panorama Developments, a car-hire firm, for his own purposes. On the hire agreements the hirer was stated to be the secretary, but every time the secretary contracted as company secretary and purportedly for the benefit of the defendants’ business. Held that the secretary had ostensible authority and so the defendant company was liable
how does a principal create agency via ratification?
by signing or giving formal consent to the actions that an agent has already taken on their behalf when they were unaware
Bolton Partners Ltd v Lambert 1889
an offer of purchase was made by Lambert to an agent of Bolton Partners. This agent was not authorised to make any contract of sale but Lambert’s offer was accepted anyway. Lambert then withdrew the offer and after the withdrawal Bolton Partners ratified the acceptance of the offer. Held that the ratification by Bolton Partners related back to the acceptance by the agent and therefore the withdrawal by the Defendant doesn’t take effect and Bolton Partners were entitled to specific performance
in situation is agency created by necessity?
in a critical situation or emergency
