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Agent - methods of Appointment & Termination - Coggle Diagram
Agent - methods of Appointment
& Termination
Appointment
A Principal may appoint an agent
· By deed (under seal)
· In writing
· Orally
An agency relationship can be established irrespective of whether or not it was the intention of the parties involved.
There are four main ways this can be happen:
a) By Estoppel
A rule of evidence, which states that, where the conduct of a party is such so as to establish a certain thing is true then it cannot be denied.
b) By Implication (actions)
contract can be implied from the
conduct or relationship of the parties
c) By Necessity
An agency by necessity is created when events occur which require a third party to appoint an agent to take on obligations, which would have been incurred by the principal
d) By Ratification
Where a party behaves as an agent, but has not been so appointed by the second party,
· Where an agent has been properly appointed, but where he exceeds the authority delegated to him by the principal.
Termination
By completion or frustration of the agency
impossible for the agency to complete its business
By operation of the law
Death, bankruptcy or mental
incapacity of the Principal
By action of the parties concerned.
By expiry or completion
Liabilities of the Principle
To indemnify the agent for any transactions carried out as an agent and within his authority,
To pay reasonable remuneration for services rendered
To give notice to dismiss the agent as agreed or as is reasonable
To ratify contracts as appropriate,
To ensure that the agent is properly appointed.