The Law of agency

Question 1

What is a agent

Answer 1

Is the legal person who acts on behalf of another (eg. negotiating)

Question 2

What is agency

Answer 2

Is the legal relationship where one person (agent) is authorised by another (a principle) to act on that persons behalf
(Does not need to be contractual)

Question 3

3 factors determining whether an agency can be implied in the absence of express consent by principle

Answer 3

1. Whether a manifestation of assent by the principle can be found
2. Determination of whether an agency relationship exists is whether the act by the alleged agent provides some degree of benefit to the putative principle
3. The putative principle must have some control over the alleged agent

Question 4

Creation of an agency relationship

Answer 4

Creation of an agency 
Agreement (Express or Implied agreement)
Implied agreement 
Necessity 
Estoppel 
Ratification

Question 5

Estoppel

Answer 5

Legal principle that prevents (estop) one party from arguing/asserting a right that contradicts an earlier statement agreed to by law

Prevents one from being unjustly wronged by inconsistencies of another words or actions

Question 6

The agent may exists if:

Answer 6

1. The agreement has ceased but principle failed to inform third party
2. No agency relationship has ever existed, but principle allows a third party to believe the agent has the authority to act
3. An agreement exists but the agent exceeds his authority

Question 7

Agency by Estoppel

Answer 7

Tinkler v commissioners (July 2021)

Barrett v Deer (1828)

Question 8

Ways agency by necessity can be used

Answer 8

Agent must be in control of principles property
Must be impossible for agent to get principles instructions
Genuine emergency
Agent must act in good faith in interest of principle

Question 9

If agency of necessity exist

Answer 9

1. The agent may claim expenses
2. The agent has a defence if sued for trespass for disposing of the goods
3. A third party who acquired goods from such an agent gets good title to the goods

Question 10

Ratification

Answer 10

the action of signing or giving formal consent to a treaty, contract, or agreement, making it officially valid

Question 11

Agency by ratification

Answer 11

Increased authority may be given if the principle adopt the agreement made between the agent and third part
Ratification must be within reasonable time
P must adopt whole contract
P must have legal capacity
P must be in existence at time of contract
Agent must indicate they are a agent
Ratification must be communicated to third part

Question 12

Consequences of ratification:

Answer 12

1. Agent is free from liability for acting without authority
2. Agent is entitled to remuneration from principle where appropriate
3. Third party obtains title to any property which has been transferred under the contract
4. A contract made by the agent on the principles behalf is retrospectively binding on the principle

Question 13

Duties of an agent

Answer 13

1. Not to take bribe
2. Not to make a secret profit
3. To maintain confidentiality
4. To perform agreed tasks and follow instructions
5. To exercise care and skill

Question 14

Rights of an agent

Answer 14

1. To claim indemnity
2. To remuneration
3. To a lien over the principle property

Question 15

Contract will be binding by and against the principle if:

Answer 15

1. The agent was acting under the principles actual authority at the time the contract was made
2. The terms of the contract do not prelude the existence of the principal

Question 16

Case examples

Answer 16

Chaudry v Prabhakar (1988)

Armstrong v Jackson (1917)