Topic 4: Agency (B)

Question 1

What case established the doctrine of privity?

Answer 1

Dunlop v Selfridge

Question 2

How does agency affect the doctrine of privity?

Answer 2

It acts as an exception to the general rule

Question 3

What are the ways of creating an Agency?

Answer 3

1) By agreement (i.e. express actual authority, implied actual authority, and usual authority)
2) Ratification
3) Ostensible/apparent authority
4) Necessity

Question 4

What case dictates that agency by agreement does not have to be in a contract?

Answer 4

Stevenson v Hardie

Question 5

What case is key for Expressed Actual Authority?

Answer 5

Schuler v Wickman

Question 6

What case is key for Implied Actual Authority?

Answer 6

Waugh v HB Clifford & Sons

Question 7

What case is key for Usual Authority?

Answer 7

Watteau v Fenwick

Question 8

What are the requirements for a creation of Agency by Ratification?

Answer 8

1) Named and identifiable principal (Durant)
2) Principal in existence and ascertainable at time contract made (Kelner)
3) Capacity (Firth)
4) Timely
5) Nullities can’t be ratified
6) Full knowledge of the facts
7) Can be, but doesn’t have to, be communicated (Can be by words or conduct)

Question 9

What are the requirements for a creation by ostensible/apparent authority?

Answer 9

1) Representation must have been made that the person had authority to act as agent
2) Representation must have been of fact
3) Must have been made by principal to TP
4) TP must have relied on representation

Question 10

What are the ways of creating an agency by necessity?

Answer 10

1) Only practicable action in the circumstances
2) Carrier must have had no opportunity at the time to get instructions from owner
3) Must have acted honestly and in owner’s best interest

Question 11

What are the duties of the agent to the principal?

Answer 11

1) Perform the contract
2) Be obedient to principal
3) Exercise due care and skill
4) Don’t delegate
5) Don’t deny principal’s title
6) To account
7) Fidelity
8) Don’t make secret profits

Question 12

What are the duties of the principal to the agent?

Answer 12

1) To remunerate
2) To indemnify

Question 13

How can an Agency be terminated?

Answer 13

1) Performance
2) Notice
3) Inconsistent conduct
4) Insanity
5) Death or Dissolution
6) Cessation or Transfer of Business
7) Bankruptcy