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Law of Agency (Duties (Obedience-task in accordance with principals…
Law of Agency
Duties
Obedience-task in accordance with principals situations
standard of care and skill
Act personally-can't delegate unless allowed
Disclosure-agent must disclose all information to principal
Good Faith-agent can't let their own interests conflict their principal
Accounts-agent cannot accept secret profit
Agent must not disclose confidential information regarding principals affairs
Effects
Agent discloses identity of principal-agent has no liability under the contract
Agent discloses existence but not identity of the principal-agent can't sue or be sued
Agent does not disclose the existence of the principal-agent authorised to make the contracts
Principle is non existent-agent is liable
Breach of Authority of Agent-agent liable to damages to 3rd party
Necessity-law confers authority on one person to act as agent without principals consent
Forced by an Emergency
Impossible to get instructions from the principal
Agent acted in good faith and not for their convenience
Estoppel
Person by implication/conduct allows 3rd party to believe that person is their agent
Partnership-partners each others agents in making of contracts
Prevent estoppel-notice given by principals to 3rd parties that partnership doesn't exist
Agents-contractual relations between principles and 3rd parties
Qui facit per alium-He who acts through another acts directly for himself
Agency-one person acts on behalf of another person
Classification
General Agent-implied authority and appointed by the principle e.g. solicitor
Special Agent-appointed by principle to perform specific task e.g.Auctioneer and Estate Agent
Universal Agents-appointed by legal document called Power of Attorney-unlimited authority to enter into contracts
Creation
Express Agreement-terms and stipulations declared at time of agreement
Agent appointed verbally/written agreement
Implied Agreement-understood an agreement even if no written agreement in place e.g. relationship between employer and employee
Ratification-approving contract after entered into by the agent
Agent expressly contracted as agent and identifies the principle
Principle must be in existence at the time of the contract
Principle has before ratification, full knowledge of the material facts
Principle-ratifies within time period
Principle ratifies the whole contract and not parts of it
Rights
Paid agreed commission-if amount not settled agent entitled to reasonable amount
Indemnified for losses and liabilities-act outside authority they lose their entitlement
Temination
Acts of the parties-Purpose completed/mutually agree to end the contract
Operation of the Law-Death/Frustration/Expiratory