Chapter 4 Flashcards
Agency bound by consent
Consent may be stated or implied orally or in writing
Unless agent is to execute a deed then consent must be in writing
Estoppel
Stops you from going back on ur word
Words or visit of the principal give to a third party the impression that the person who participated to contract with the 3rd party is the agent of the principle
The 3rd party as a result acts upon this
Agency of necessity
Arises when a person is faced with an emergency in which the property or interests of another party are in direct jeopardy. And in order toy preserve that property it becomes necessary to act for that person without their authority
Agent of necessity will need to show that
- no practical way of contacting principal
- his actions arose from some pressing need for action
- good faith and interest of principal
- reasonable and prudent in the circumstances
- should be some contractual agreement between the parties
Sachs v Mikles 1948
D agreed to store Cs furniture after some time had passed D needed the storage but couldn’t trace C so sold it. C sued d for concession. D pleaded agency of necessity
D lost as no emergency had arisen and D had sold the furniture for his own convenience
Agency by ratification
Ratification validated past acts of the agent to create an agency relationship reterospectively
Principal may only ratify the agent if:
-principal was in existence at time of agents act
-principal had legal capacity to make contract themselves at the time of act and time of purported ratification
-agent are time of making the contract names of sufficiently identifies the principal
-in a reasonable time
7 Duties of an agent
Accountability
No conflicts of interest
Performance
Obedience
Skill
Personal performance
Confidence
Accountability duty of an agent
An agent must provide full information to his principal of the transaction and for all monies arising as a result
No conflict of interests duty of an agent
An agent must not put himself in a position where his own interests conflicts with that of the principal
Performance duty of an agent
Agent who agrees to act as an agent for reward has a contractual obligation to perform their agreement take
Obedience duty of an agent
Agent must strictly act in accordance with his principles instructions in so far as these are lawful and reasonable. Even if he believes disobedience is in the principals best interests
Skill duty of an agent
Must undertake to maintain the standard of skill and care to be expected of a person in his profession.
Personal performance duty of an agent
Agent is usuallly selected because of personal quality and one’s a duty to the principal to perform a tasks themselves with no delegation
Confidence duty of an agent
Agent just keep in confidence what he knows about his provides affairs even after the agency relationship has ceased
Boston Deep sea fishing v Ansell 1888
A, who was managing director of claimant accepted commissioned
From supposed on an order which he placed with them for goods supplied to agent
He was dismissed and the company sued to recover these commission
Company was justified in surfing him and he just account for these commissions
3 rights of an agent
Indemnity
Remuneration
Lien
Indemnity right of an agent
If agent must incurs any out of pocket expenses they should be entitled to get them reimbursed
Remuneration right of an agent
Agent is entitled to be paid any agreed remuneration
Lien right of an agent
Agent had the right to Excersise a lien owned by principal
(Right to retain goods that are pending payment of sums owed to him)
3 sources of authority
Actual expressed
Actual implied
Ostensible/apparent
Actual expressed authority
Expressly given by principal - express words - consent
Actual implied authority
Authority to do all things that would be usual in the position/role of that agent
Obstensible authority/apparent authority
Created by principal either exoressly or by inaction for example principal knows 3rd party believed someone is an agent but do bogging to correct them
Watteau v fenwick
P owner hotel and appointed old owner to be the manager of the hotel. Against expressed instructions A bought cigars on credit from a third party who sued P for the payment. P argued he was not liable on contract as A had no authority to hug cigars
Although A had no actual expressed authority it was unusual for managers to buy cigars on credit and as he not knows of the position T was entitled to assume A had the sufficient authority of a hotel manager
Freeman and Lockyer v Buckhurst park properties
K and H were property developer l. H lived abroad and K ran the busines. As a director K had no actual or apparent authors to enter into contracts as agents of the company and was never formally appointed as MD
However H and other 2 directors allowed him to do so. A claimant sued company for work done on K instructions
No actual or implied authority however there was authority arisen from estoppel as K had apparent authority as they didn’t stop him
