LAW OF AGENCY

NATURE OF AGENCY

TYPES OF AGENCY

EFFECTS OF CONTRACTS MADE TO THE PRINCIPAL

DUTIES OF AN AGENT TO THE PRINCIPAL

DUTIES OF A PRINCIPAL TO THE AGENT

TERMINATION OF AN AGENT

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AGREEMENT

AGENCY BY RATIFICATION

AGENCY BY NECESSITY

AGENCY BY ESTOPPEL

DELEGATION OF AUTHORITY BY AGENT

BY EXPRESS

BY IMPLIED

A contract of agency involves a tripatile relationship.The first person (i.e. THE AGENT) gvn authority to bring the second person (i.e. THE PRINCIPAL) into contractual relations w the third parties.

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SECTION 135 CONTRACTS ACT 1950

who can be agent?SECTION 136 CONTRACTS ACT 1950

'agent' = a person employed to do any act for another or to represent another in dealings w 3rd persons.

the person for whom such an act is done or who is represented called 'principal'

-anyone whos is 18 and above.
-anyone whos sound of mind. can be PRINCIPAL

any person can become AGENT except person of unsound mindand who are BELOW 18 NOT LIABLE towards their principal for the acts done by them as agents

Do we need consideration? Section 138 Contracts Act 1950 provides that no considertion is necessary to create an agency

-can be entered in a formal or an informal manner.
-Section 140 CA1950 provides that an authority is said to be express when it is gvn by words, spoken or written

may be written or oral form

eg of an express appoinment made in writing is a POwer of Attorney. Even a leeter or words spoken may be effective in appointing an agent.

can infer the creation of an agency by implication when a person by his words or conduct holds out another person as having an authority to act on him

EG: If he allows another person toorder goods on his behalf and habitually pays for them, an agency may be implied. He will be bound by the contratcs as if he has expressly authorised them

Chan Yin Tee v William Jacks &CO

Section 149 CA 1950: where acts are done by on eperson on behalf of another but wihtout his knowledge or authority, he may elect to raaitfy or to disown the acts. If he ratifies them, the same effects will follow as if they had been performed by him.

Bolton Partners v Lambert

Kelner v Baxter

In certain circumstances, the law may confer authority on one person to act as agent for another wihtout regard to the consent of the principal. This agency arises by operation of law but not contract. In such situation, the law deems the agency to exist despite there being no agreement.

require immediate action and communication with the principal is impossible. although no authority to do so

Great Northern Railway Co v Swaffield : a horse was being transported by rail but arrived late at the railway station. The railway company felt they had no choice but to stable the horse overnight. It was held that despite not being authorised by the owner of the horse, the railway company could claim reimbursement for the cost incurred.

(i) emergency must arise justifying the action to preserve or dispose of the property of principal
(ii) impossible to contact principal to take instructions
(iii) agent acted in interest of the principal.

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