Appointment and Authority of Agents

Question 1

Agent

Answer 1

A person employed to do acts , and make contracts for another person.
( If minor , not liable for negligence or exceeding authority )

Question 2

Examples of agency contract

Answer 2

• To sell
• To collect rent
• To manage his shop

Question 3

Principal

Answer 3

Person for whom act is done.
( It must be competent to contract )
i.e Not minor

Question 4

Authority of Agent
(Actual authority)

Answer 4

Implied authority (given by law)
- Authority which is necessary to complete a duty.
Example:
To sell goods: Negotiable price + packing + Repairing

Express authority
(Given by principal)

Question 5

Authority in emergency

Answer 5

• Real Emergency
• Impossible to contact principal
• Agent acted in best interest of principal

Question 6

Ostensible / Apparent Authority (by Estoppel)

Answer 6

• principal give representation to third party
• That agent has authority
• Third party make agreement an such representation