Agents Flashcards
What is an agent?
a person who is employed by a principle to negotiate or arrange/enter into contracts on behalf of the principle
What are the different ways a relationship between principle and agent formed?
1) express agreement
2) implied agreement
3) by ratification
4) by estoppel
5) by necessity
What is required for express agreement between principle and agent?
Must be in writing usually with specific authority
if full authority is given it is a power or attorney, which must be in writing
What is required for implied agreement between principle and agent?
through conduct of both parties.
What is required for ratification of a contract?
creation of relationship after person acting as an agent without authority.
principle ratifies the contract effective from date contract was entered and applies to entire contract.
(principle must exist at time of contract and inform third party of ratification)
What is meant by relationship of principle and agent through estoppel?
When the principle is aware agent is acting without authority but has let it carry on, principle is estopped from denying relationship because they have allowed it
What is an agent of necessity?
when a third party becomes an agent in cases of emergency, where owner of the goods cant be contacted and acts in good faith
What are the different types of authority of an agent?
1) express
2) implied
3) apparent
What is express authority?
where principle expressly authorises agent on specific contract, can be written or oral.
where agent acts beyond limits they are liable for breach of warranty to principle and third party
What is implied authority?
is when the agent has authority in accordance with whats ‘‘normal’’ within the circumstances regardless of what specific authority the principle has given.
principle is still held liable but can claim against the agent.
What else is apparent authority called?
ostensible authority
What is apparent authority?
where an entity allows an agent to act as if they have authority even though they don’t, and is not limited to what is ‘‘normal’’ for an agent.
How is apparent authority much wider than what is normal?
- the entity it self represents the agent as having much wider powers
- this representation should be of fact not law
- representation should be made direct to third party
- third party must show they relied on the representation
- and must have acted on representation
How can an agency agreement be terminated?
- by agreement
- by operation of law (if by law the contract cant go on)
How is an agency agreement terminated automatically?
- by death of agent or principle
- insanity of agent or principle
- bankruptcy of principle
