New Agency

Question 1

Definition of Agency

Answer 1

“contract between the principal and third party, no liability for the agent to this contract” -Montgomerie v uk mutual steamship association 1891

Question 2

Creation of Agency

Answer 2

” no necessity for a contract to exist, it is sufficient there is consent”- Yausda fire and marine insurance v orion marine insurance 1995

Question 3

Types of agents

Answer 3

general, special, mercantile, broker, commission, forwarding, transportation, commercial and confirming

Question 4

Types of Authority

Answer 4

Actual express, Actual Implied, Apparent, Usual and Necessity

Question 5

Usual Authority

Answer 5

Crossover with implied and apparent. No consent or agreement needed

Question 6

Case for Usual Authority

Answer 6

Watteau v Fenwick 1893

Question 7

Apparent Authority

Answer 7

No consent/agreement, Authority of agent as it appears to the third party.

Question 8

How many requirements for Apparent Authority

Answer 8

3

Question 9

What is the first requirement for Apparent Authority

Answer 9

Representation through conduct, Armagas v mundogas- comes from principal and not the agent

Question 10

What is the second requirement for Apparent Authority

Answer 10

3rd party must rely on the representation

Question 11

What is the third requirement for Apparent Authority

Answer 11

3rd party must have altered their position, freeman v buckhurst- simply entering into a contract

Question 12

What is the case for Apparent Authority

Answer 12

Freeman v Buckhurt- P makes representation as to give impression to the third party that the agent has authority to act on their behalf

Question 13

Actual Implied Authority

Answer 13

With consent/agreement. scope of authority is more difficult to determine. up to the court to decide

Question 14

Case for Actual Implied Authority

Answer 14

Hely-Hutchinson v brayhead 1968- chairman of company acted as managing director, company held liable as by conduct granted implied authority

Question 15

Actual Express Authority

Answer 15

with consent/agreement, most straightforward, need not be in writing but should set out the scope of the agents authority

Question 16

Cases for Actually Express Authority

Answer 16

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.

Question 17

Capacity Legislation

Answer 17

s1(2) and s2(1) mental capacity act 2005- if agent makes contract for principal that is incapacitated, principal will not be bound

Question 18

Cases for Capacity

Answer 18

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.

Question 19

How many ways to terminate an agency

Answer 19

4

Question 20

First way to terminate an agency and information

Answer 20

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

Question 21

Second way to terminate an agency and information

Answer 21

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

Question 22

Third way to terminate an agency and information

Answer 22

Insolvency- when principal becomes insolvent agent automatically terminates that insolvency. when agent becomes insolvent, agency will terminate

Question 23

fourth way to terminate an agency and information

Answer 23

Frustrated- certain intervening acts may frustrate it, including rendering performance of the contract impossible/illegal. marshall v glanvill

Question 24

Ratification

Answer 24

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