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Law of Agency (Part 1) - Coggle Diagram
Law of Agency (Part 1)
Definition
Agent and Principle (S 135 CA):
An "agent" is someone who acts on behalf of another and represents them to other parties. The "principal" refers to the person doing the performance or their representative.
Sub Agent (S 144 CA):
A "sub-agent" is a person engaged by and under the direction of the original agent to do agency business.
Effects of appointing a sub agent (S 145 CA):
The principal is represented by a properly appointed sub-agent, who is bound by and responsible for their acts, as if they were an original agent. The sub-agent is responsible for their acts to the agent, except in cases of fraud or wilful wrong.
Substituted Agent (S.147 CA):
When an agent names another person to act for the principal in the agency's business, that person is not a sub-agent, but rather an agent of the principal for the part of the business entrusted to them.
Effects of appointing a substituted agent (S.148 CA):
When selecting an agent for a principal, the agent must apply the same level of judgement as a prudent individual. If this is done, the agent is not accountable for the agent's actions or carelessness.
Effect of Agency
There are two contracts: one between the principal and the agent, from which the agent's authority is derived, and another between the principal and a third party through an agent.
The effects include the creation of a valid agency contract between an agent and a principal, and a valid agency contract between the principal and a third party.
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