New Agency Flashcards
Definition of Agency
“contract between the principal and third party, no liability for the agent to this contract” -Montgomerie v uk mutual steamship association 1891
Creation of Agency
” no necessity for a contract to exist, it is sufficient there is consent”- Yausda fire and marine insurance v orion marine insurance 1995
Types of agents
general, special, mercantile, broker, commission, forwarding, transportation, commercial and confirming
Types of Authority
Actual express, Actual Implied, Apparent, Usual and Necessity
Usual Authority
Crossover with implied and apparent. No consent or agreement needed
Case for Usual Authority
Watteau v Fenwick 1893
Apparent Authority
No consent/agreement, Authority of agent as it appears to the third party.
How many requirements for Apparent Authority
3
What is the first requirement for Apparent Authority
Representation through conduct, Armagas v mundogas- comes from principal and not the agent
What is the second requirement for Apparent Authority
3rd party must rely on the representation
What is the third requirement for Apparent Authority
3rd party must have altered their position, freeman v buckhurst- simply entering into a contract
What is the case for Apparent Authority
Freeman v Buckhurt- P makes representation as to give impression to the third party that the agent has authority to act on their behalf
Actual Implied Authority
With consent/agreement. scope of authority is more difficult to determine. up to the court to decide
Case for Actual Implied Authority
Hely-Hutchinson v brayhead 1968- chairman of company acted as managing director, company held liable as by conduct granted implied authority
Actual Express Authority
with consent/agreement, most straightforward, need not be in writing but should set out the scope of the agents authority
Cases for Actually Express Authority
Freeman v Buckhurst- created by a consensual agreement to which they alone are parties….implications from express words used.
midland bank v reckitt 1933- solicitor given power on principals account. fraudulent use.
Capacity Legislation
s1(2) and s2(1) mental capacity act 2005- if agent makes contract for principal that is incapacitated, principal will not be bound
Cases for Capacity
G(a) v G(t) 1970- even a minor can appoint someone if they can legally enter into the contract
Yonge v Toynbee 1910- Defendant who was the principal, legally declared insane.
How many ways to terminate an agency
4
First way to terminate an agency and information
By agreement- between the principal and agent, can be terminated just as it can be created by one, or when specific task is completed or fixed date in the agreement
Second way to terminate an agency and information
Operation of law- loses legal capacity (mental/death).
Death- campanari- principal died before agent could sell the picture, automatically terminated.
Mental incapacity- automatically terminates as agent is unable to comprehend nature and character. - Drew v nunn
Third way to terminate an agency and information
Insolvency- when principal becomes insolvent agent automatically terminates that insolvency. when agent becomes insolvent, agency will terminate
fourth way to terminate an agency and information
Frustrated- certain intervening acts may frustrate it, including rendering performance of the contract impossible/illegal. marshall v glanvill
Ratification
if an agent carried out an unauthorised act in the name of the principal, they may ratify the contract. if they decide to ratify it they decide to take on the agents unauthorised acts as authoried. a void contract cannot be ratified
