Essentially
The Agent provides a service for principal
The Agent represents the principal
The Agent acts affect the legal position of the principal
Creation of agency
Agency by consent/agreement
Agency by estoppel
Agency by necessity
Agency by ratification
Agency by consent
Consent may be express or implied. An agency can be expressly created either orally or in writing.
There is only one exception
to this, which is that if the agent is to execute a deed on the principal's behalf then the
agency must be created by deed. Essentially this means that the agent is given a power of attorney.
In commercial transactions it is usual (but not essential) to appoint an agent in writing, so that the
terms and extent of the relationship are set down to avoid misunderstanding. No consideration is
required.
Agency by estoppel (or 'holding out')
Estoppel comes from evidence and tort not contract
Agency by estoppel arises by operation of law and is no less effective than an agency expressly
created.
It arises when the words or conduct of the principal give to a third party the impression that the
person who purports to contract with the third party is the agent of the principal, and the third party,
as a result, acts upon this.
The principal is 'estopped', or prevented, from denying the existence of the agency.
Agency by estoppel can only arise where the conduct of the apparent principal creates it. Agency
does not arise by estoppel if it is the ‘agent’ who holds himself out as agent.
Agency of necessity
An agency of necessity is another way in which an agency can arise by operation of law. Its origins
can be found in mercantile law, and in shipping law in particular.
It may arise where a person is faced with an emergency in which the property or interests of another
person are in imminent jeopardy and, in order to preserve that property or those interests, it
becomes necessary to act for that person without his authority
An agency of necessity probably only applies where there is already some existing contractual
relationship between the parties, as the law is highly unlikely to allow a person to be bound by the
act of a complete stranger.
An agent who seeks to bind a principal on the grounds of an agency of necessity will need to show
that the agent had no practical way of contacting the principal in order to obtain the principal's
instructions
.
His actions arose from some pressing need for action (usually an emergency of some kind, involving
perishable goods or starving animals, for example)
The Agent provides a service for principal
The Agent represents the principal
The Agent acts affect the legal position of the principal
Creation of agency
Agency by consent/agreement
Agency by estoppel
Agency by necessity
Agency by ratification
Agency by consent
Consent may be express or implied. An agency can be expressly created either orally or in writing.
There is only one exception
to this, which is that if the agent is to execute a deed on the principal's behalf then the
agency must be created by deed. Essentially this means that the agent is given a power of attorney.
In commercial transactions it is usual (but not essential) to appoint an agent in writing, so that the
terms and extent of the relationship are set down to avoid misunderstanding. No consideration is
required.
Agency by estoppel (or 'holding out')
Estoppel comes from evidence and tort not contract
Agency by estoppel arises by operation of law and is no less effective than an agency expressly
created.
It arises when the words or conduct of the principal give to a third party the impression that the
person who purports to contract with the third party is the agent of the principal, and the third party,
as a result, acts upon this.
The principal is 'estopped', or prevented, from denying the existence of the agency.
Agency by estoppel can only arise where the conduct of the apparent principal creates it. Agency
does not arise by estoppel if it is the ‘agent’ who holds himself out as agent.
Agency of necessity
An agency of necessity is another way in which an agency can arise by operation of law. Its origins
can be found in mercantile law, and in shipping law in particular.
It may arise where a person is faced with an emergency in which the property or interests of another
person are in imminent jeopardy and, in order to preserve that property or those interests, it
becomes necessary to act for that person without his authority
An agency of necessity probably only applies where there is already some existing contractual
relationship between the parties, as the law is highly unlikely to allow a person to be bound by the
act of a complete stranger.
An agent who seeks to bind a principal on the grounds of an agency of necessity will need to show
that the agent had no practical way of contacting the principal in order to obtain the principal's
instructions
.
His actions arose from some pressing need for action (usually an emergency of some kind, involving
perishable goods or starving animals, for example)
