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4 - Law of agency (Duties of an agent (Good faith (Full duty of diclosure,…

- - - - There is express authority from principal
      - Where authority is implied by circumstances
      - Where it is in accordance with trade custom
      - In cases of necessity
      - Sub-agent acts on behalf of agent not principal
      - Overseas (producing) broker can delegate duties to (placing) broker in London Market
  - - - Any information which may affect principal's position
        
        Must still be careful to whom they disclose confidential information
  - - - Sue agent in tort (e.g. if agent refuses to return property)
      - Dismiss the agent without notice or compensation (has to be serious breach such as bribery)
      - Sue agent for breach of contract
      - If breach is fraudulent, rescind contract and refuse commission
- - - - Acting for insured
        
        May be able to avoid policy under Insurance Act (2015
      - Acting for insurer
        
        Cannot avoid
  - - - Agent of insurer when doing so
  - - - Only insurer's agent if...
        
        Collection of info is under express authority from insurer
        
        Agent is under contract as their agent
        
        If agent does something for purposes of Financial Services and Markets Act (2000)
- - - - Undisclosed principal can enforce contract against TP
      - UP cannot...
        
        Sue if didn't exist when contract made
        
        Ratify a contract
        
        Sue if contract expressly says agent is sole principal
    - - Has right of election against either agent or UP (not both) if principal is wholly undisclosed
  - - - May know existence but not name
    - - Except...
        
        Can be liable on some deeds, cheques or bills of exchange
  - - - If agent fails to pass on money to TP, principal may still be liable
    - - TP paying agent does not automatically discharge debt to principal
        
        Not the case if agent has authority to receive payment on principal's behalf
  - - - Principal will be liable if agent commits tort when acting in the course of their authority
      - Agent not liable if they innocently pass on false info given to them by principal
    - - Person implies that they have authority to act and bind principal when acting as an agent
      - Third party may be able to sue agent for breach of warranty of authority
      - Agent may even be liable when they genuinely believed that their actions were authorised
- - - - Insured knows or should know what is known to their agent
      - Insured does not know confidential info or info acquired through person who is not connected with contract of insurance
- - - - Act wasn't authorised nor ratified by principal
      - If they are in breach of their duties
      - The act is illegal or void by statute
  - - - Particular
        
        Particular goods
      - General
        
        Any goods
  - - - If commission is clearly payable but amount not set out, principal will pay professional rates or a reasonable sum (which can be decided by a court)
- - - - Not all consequences of relationship will cease immediately upon termination
        
        Right to commission earned
        
        Right to indemnity for expenses
    - - Revocation by principals may end agent's actual authority but not their apparent authority
        
        Principal liable until TP receives notice that agency has been terminated
      - Authority may end automatically upon involuntary termination
        
        e.g. death or insanity
        
        TP has no remedy against principal but can sue agent for breach of contract
- - - - Arises from instructions given to agent in agency agreement
        
        Should seek clarification over ambiguity from principal
        
        Liability won't fall on agent provided they acted in good faith
    - - Agents have authority to do anything which is necessary to carry out their express instructions
      - May have authority to carry out acts usually performed by those in their position (usual or customary authority)
      - Both express and implied authority when agency is created by express agreement
        
        Only implied authority of agreement is implied
  - - - 'Agency by estoppel' - person may present another as their agent when latter has no authority at all
    - - Third party can be unaware that agent no longer has actual authority
        
        Principal should inform TPs to avoid apparent authority
    - - Agent unaware that usual/customary authority had been restricted
    - - Therefore must rely on what appears to be authority of the agent
    - - Must make some representation that agent has authority to act on their behalf
- - - - Relationship can be created retropectively
        
        Person may ratify insurance contract which was made on their behalf but without their knowledge
      - Conditions...
        
        Agent must purport to act on behalf on principal not itself
        
        Principal must be made aware of full circumstances
        
        Principal must have existed and had contractual capacity at time of act
        
        Must take place within reasonable time
        
        Whole contract must be ratified
    - - Express agreement
        
        Creation of most agencies including insurance agencies
        
        Terms of agency will be set out in detail
        
        Creation by deed = power of attorney
      - Implied agreement
        
        Can be implied by conduct and relationship between parties
    - - When person entrusted to look after goods makes emergency decision in order to protect them
        
        Only when impossible to gain owner's instructions