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Law of Agencies - Coggle Diagram
Law of Agencies
Contract Act 1950
2 parties agree that one will represent to the other
Contract between the principal and the agent
Contract between the principal and the third party
Ways to create agency
Ratification by the principal (agency by ratification)
created when:
-a person misrepresent himself as an agent or acting outside the scope of his authority.
-it was authorized by principal
can be done under these situations:
-The act or contract must be authorized by principal
-The authorized act must be one which is recognized by law
-The agent must expressly act as an agent for the principal
-The agent must have principal who is in actual existence or capable of being ascertained.
-The principal must have contractual capacity at the contract time
-The principal must at the time of ratification have full knowledge of all materials facts (s 151)
-The principle must ratify the whole act or contract
-must made within a reasonable time
-must not injure a third party
Agency of Necessity
A person become agent without appointed
Special situation exist
Implied appointment by the principal (implied agency)
-principal and agent do not expressly create an agency
-principal do not expressly appoint a agent
-the agency is implied
Agency by estoppel (holding out)
Principal is estopped from denying his agent's authority
-A principal creates the appearance of an agency that in actuality does not exist.
-The other party to contract believe that the agent has authority to contract
-The principal is estopped from denying the agency relationship and is bound by the contract
Express appointment by the principal (express agency)
-principal and agent agree to express into contract
-agent has authority to act
-principal and third party are bound by the contract