Contract Law - Agency (Exam Plan)

Contract Law - Agency

Agency

STEP 1 - define

[INSERT AGENT] agreed to X on behalf of [INSERT PRINCIPAL]. This raises the issue
of agency.

Agency is the relationship that arises when an agent acts on behalf of the principal, and
has the power to affect the principal’s legal position with regard to a third party.

STEP 2 - apply

Agency may arise via actual or apparent authority (Freeman and Lockyer v Buckhurst
Park Properties). If [INSERT AGENT] is acting with the actual or apparent authority of
[INSERT PRINCIPAL], the contract/variation is binding on [INSERT OTHER PARTY].

Actual authority is created by express appointment (Freeman and Lockyer v Buckhurst
Park Properties).

Apply to facts

The doctrine of apparent authority states that a legal relationship between the principal
and third party arises when these criteria apply (Freeman and Lockyer v Buckhurst Park
Properties):

- A representation is made by the principal (by words or conduct) to the third party
that the agent had authority;
- The third party relies on this representation believing that the agent had authority;
and
- The third party alters their position, e.g. by entering into a contract.

Apply to facts in separate, small paras. No need to have separate headings - be quick.

Step 3 - effect

[CONCLUDE WITH RELEVANT STATEMENT FROM BELOW WHICH FITS MY
ANALYSIS]