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LAW OF AGENCY - Coggle Diagram
LAW OF AGENCY
CREATION OF AGENCY
EXPRESS AGENCY
P & A
expressly agree to enter
agency agreement
A has authority to act on behalf of the P
P appoint A to sell car = A has right to sell it to 3rd party
P & 3rd party are bound by the contract
No special form is required (can be oral/writing)
IMPLIED AGENCY
P
not expressly appoint
a person as agent
law assumed: agency relationship does exist
Agency is implied by law from the conduct of parties
AGENCY BY RATIFICATION
A person
misrepresents himself as an A
or
act beyond his right
and it was
authorized by principal
Contract between A & 3rd party =
valid
A is free from any liability
P is bound by the contract
Past case :
Keighley Maxted & Co V. Durant
AGENCY BY NECESSITY
exist when there is a
special situation
impossible to get P's instructions
to prevent loss to the P
A acted in good faith
A can act even though he has never appointed
Past case:
Great Northern Railway Co V Swaffield
AGENCY BY ESTOPPEL
P allows a 3rd party to believe that A is his agent
in fact, A is not his agent
P is
estopped from denying
his agent's right to the contract
P creates the appearance of A that in actuality does not exist.
3rd party believe that the agent has authority to contract
NATURE OF AN AGENCY
2 parties
agreed that one person will represent another person
to form a contract (an agent)
eg: Contract between A and C, however the agent (B) is the one who will make the contract A and C.
Principal and the agent
principal appoint agent to make contract on his behalf
Principle and the third party
The contract is made between the agent and third party