LAW OF AGENCY

Question 1

INTRODUCTION AND NECESSITY

Answer 1

AGENT HAS AUTHORITY TO DO OR TO ACT FOR PROTECT THE PRINCIPAL FROM LOSSES

CONDITION
1) AGENT IN A GOOD FAITH
2)IMPOSSIBLE TO CONTACT W PRINCIPAL FOR NEXT INSTRUCTION
3)SITUATION MUST REAL AND ACTUAL
4)ENTRUSTED W THE PRINCIPALS PROPERTY
5)AGENT ACTION IS NECESSSARY TO PREVENT LOSS

ELEMENT
1) MUST BE SITUATION OF NECCESITY
2) AGENT CANT OBTAIN INSTRUCTION
3) MUST ACT IN A GOOD FAITH
4) AGENT ACT MUST REASONABLE AND PRUDENT

IN THE CASE SPRINGWER V. GREAT WESTERN RAILWAY CO (1921)

THE DEFENDANT AGREE TO CARRY THE TOMATOES FROM CHANNEL ISLANDS TO LONDON BY SHIP TO WEYMOUTH AND TRAIN TO LONDON. THE SHIP WAS STOPPED 3 DAYS AT CHANNEL ISLANDS DUE TO BAD WEATHER. EVENTUALLY, WHEN THE SHIP STOP AT WEYMOUTH, THE TOMATOES WAS UNLOADED BUT DELAY FOR 2 DAYS. AT THAT TIME, SOME TOMATOES FOUND BAD. SO, THE DEFENDANT SOLD THE TOMATOES AS DEFENDANT FELT THE TOMATOES COULDNOT ARRIVED AT MARKET IN A GOOD CONDITION. WHEN THE PLAINTIFF KNOW, THE PLAINTIFF WANTED TO CLAIM TO THE DAMAGE FROM DEFENDANT. THE COURT HELD THE PLAINTIFF ENTITLED TO THE DAMAGE BECAUSE DEFENDANT DOES NOT COMMUNICATE WITH PLAINTIFF WHEN THEY COULD HAVE TO DO SO, THERE WAS NO AGENCY TO NECCESSITY.

Question 2

IMPLIED

SECTION 140 CA 1950

1) BY WORDS OR ACTION

2) BY RELATIONSHIP BETWEEN HUSBAND AND WIFE

3) BY PARTNERSHIP 1950

Answer 2

NOT DIRECTLT GRANT THE AUTHORITY TO THE AGENT

SECTION 140 CA 1950
“THE AUTHORITY TO BE IMPLIED WHEN IT IS TO BE INCCURED OF THE CIRCUMSTANCE OF THE CASE, THINGS SPOKEN OR WRITTEN OR THE ORDINARY COURSE OF FEELINGS, MAY BE ACCOUNTED OF THE CIRCUMSTANCE OF THE CASE”

1) BY WORD OR ACTION
IN THE CASE CHAN YIN TEE & WILLIAM JACK CO (1964)
THE PLAINTIFF AND YONG, A MINOR REGISTERED AS PARTNER. AT A MEETING WHEN REPRENSENTIVE OF THE DEFENDANT COMPANY, THE PLAINTIFF HELD HIMSELF OUT TO BE YONGS PARTNER. THE GOODS WERE DELIVERED TO YONG AND DIDNT PAY. THE DEFENDANT OBTAIN JUDGEMENT AND APPEALED THAT THE PLAINTIFF HAD YONG AS HIS AGENT AND MUST LIABLE FOR HIS ACTION.

2) BY HUSBAND AND WIFE
IN THE CASE MISS GRAY V. CATHCART (1922)
THE HUSBAND REFUSE TO PAY CREDIT DOLLAR215 HIS WIFE CLOTHES, THE SELLER SUED AND THE HUSBAND STATED THE EVIDENCE THAT HE GIVE DOLLAR840 PER YEAR TO HIS WIFE AND THE HUSB NOT LIABLE

3)BY PARTNERSHIP
AN AGENT AS A PARTNER WHEN IT COMES TO PARTNERSHIP

IN THE CASE BECKHAM V. DRAKE 1841

THE COURT HELD THAT PARTNER ALSO SHOULD EMPLOY THE NECESSARY STAFF IN ORDER TO RUN THE BUSINESS.
THEREFORE, ALL PARTNER MUST UNDER THIS CONTRACT.

Question 3

TERMINATION OF AGENCY

Answer 3

SECTION 154 CA 1950

“AN AGENCY IS TERMINATED BY THE PRINCIPAL REVOKING THE AUTHORITY OR BY THE AGENT RENOUNCING THE BUSINESS OF AGENCY OR BUSINESS OF AGENCY BEING COMPLETED OR AGENT UNSOUND MIND OR BECOME INSOLVENT OR BANKRUPT OR BEING ADJUDICATED (FORMAL JUDGEMENT)”

Question 4

1)TERMINATION BY THE ACT OF THE PARTIES

i) BY MUTUAL CONSENT
ii) REVOCATION BY PRINCIPAL
iii) RENUCIATION BY AGENT

Answer 4

i) MUTUAL CONSENT
THE AUTHORITY OF AN AGENT MAY TERMINATE BY THE ACT OF THE PARTIES, REVOCATION OF PRINCIPAL, RENUCIATION BY AGENT AND BY MUTUAL CONSENT. WHEMN TWO PARTIES AGREE THE AGENCY WILL TERMINATE

ii) REVOCATION BY PRINCIPAL

SECTION 156 CA 1950

“THE PRINCIPAL MAY,SAVE AS OTHERWISE PROVIDE THE LAST PRECEDING SECTION, REVOKE THE AUTHORITY GIVEN TOT THE AGENT AT ANY TIME BEFORE THE AUTHORITY HAS BEEN EXERCISED SO BIND TO EXERCISE THE PRINCIPAL”

SECTION 157 CA 1950

“THE PRINCIPAL CANT REVOKE THE AUTHORITY GIVEN TO HIS AGENT AFTER THE AUTHORITY HAS BEEN PARTLY EXERCISED, SO FAR AS REGARD SUCH ACT AND OBLIGATION MAY ARISE FROM ACT ALREADY DONE IN AGENCY”

IN THE CASE SYARIKAT JAYA V. STAR PUBLICATION (1990)

IT WAS HELD THAT 6 MONTH NOTICE WAS REASONABLE IN TERMINATING A SOLE AGENCY AGREEMENT. IN A DECIDED CASE IT WAS HELD THAT THE DEFENDANT CANT REVOKE THE PLAINTIFF AUTHORITY AFTER LOSING A BET. HE WOUKD HAVE IDEMNIFY THE PLAINTIFF FOR THE AMOUNT WHICH THE LATTER HAD PAID TO THE PERSON W WHOM HE MADE THE BET.

iii) RENUNCIATION BY AGENT
THE AGENCY ALSO CAN BE TERMINATE BY THE RENUNCIATION OF THE AGENCY BY THE AGENT. WHEN BOTH PARTIES DESIRE TO AGREE SHALL BE TERMINATED, THE AGENCY SHOULD BE END.

IF THE AGENCY IN DEFINITE PERIOD, THE AGENT CANT TERMINATE THE AGENCY BEFORE THE EXPIRY CASE WITHOUT JUST CAUSE. OTHERWISE WILL LIABLE TO PRINCIPAL FOR THE DAMAGES

SECTION 158 CA 1950 STATED
“WHEN THERE IS AN EXPRESS OR IMPLIED CONTRACT THAT THE AGENCY SHOULD BE CONTINUED FOR ANY PERIOD OF TIME, THE PRINCIPAL MUST MAKE COMPENSATION TO THE AGENT, OR THE AGENT TO PRINCIPAL, AS THE CASE MAY BE, FOR ANY PREVIOUS REVOCATION OR RENUNCIATION OF THE AGENCY W/O SUFFICIENT CAUSE.”

Question 5

2) BY OPERATION OF LAW

i) TERMINATION BY PERFORMANCE
ii) TERMINATION UPON EXPIRY
iii) DEATH OF AGENT OR PRINCIPAL
iv) PRINCIPAL OR AGENT BECOME INSANE
v) P OR A BECOME INSOLVENT OR BANKRUPT
vi) TERMINATION BY FRUSTRATION

Answer 5

i) TERMINATION BY PERFORMANCE
BASED ON SECTION 154 CA 1950 STATED THAT THE CONTRACT OF AGENCY IS ENDED WHEN THE AGENT HAS PERFORM THE CONTRACT

ii) TERMINATION BY EXPIRY
IF AN AGENCY IS CREATED FOR FIXED PERIOD WHEN THE AGENCY TERMINATED THE EXPIRY OF THAT PERIOD WHETHER THE BUSINESS IS COMPLETED OR NOT

iii) DEATH OF AGENT OR PRINCIPAL
THE AGENCY INSTANTLY TERMINATE BY THE DEATH OF THE PRINCIPAL OR THE AGENT. AN EXCEPTION ON GENERALRULES WHICH THERE IS INTEREST IN PROPERTY

iv) PRINCIPAL OR AGENT BECOME INSANE
INSANE PEOPLE ARE NOT CAPABLE TO GET INTO VALID CONTRACT AND WILL TERMINATE INSTANTLY.

v) P OR A BECOME INSOLVENT OR BANKRUPT
-RENDERS(BECOME TO END) TO THE AGENCY RELATIONSHIP
-THE PERSON RIGHT LIABILITY ARE VESTED IN OFFICIAL ASSIGNEE

vi) TERMINATION BY FRUSTRATION
-RENDER THE AGENCY UNLAWFUL, THE AGENCY MAY BE TERMINATED
- ACTS AS DEVICE TO SET ASIDE CONTRACTS, UNFORSEEN EVENT GIVE CONTRACTUAL OBLIGATION IMPOSIBLE FOR ENTERING CONTRACT.