The Law of Agency
Aims of the Lectures
Introduce our next area under consideration: the Law of Agency.
Focusing in particular on the definition of the agency relationship and the concepts of
consent and authority.
You should to be able to:
o Describe the basic relationship of agent-principal;
o Outline the fundamental notion of authority in its various iterations;
o Describe the different formulations of authority in Agency Law
o Have a good understanding of the situation in Watteau v Fenwick, including its
strengths and weaknesses
o Have a good understanding of the concept of apparent authority and how it differs
from other forms of authority
It is pretty straightforward, already looked at in other topics like nemo dat for example
What happens when an agent goes beyond their instructions? Or beyond their authority?
(managing director taking decisions beyond the scope of their authority or instructions, on
behalf of the firm) What kind of liability will there be?
The role of agency in Commercial Law
Agency is a relationship between one person, the principal, and another, the agent, under
which the agent will fulfil the intentions of the principal and act on his behalf generally
through the creation, modification or termination of contracts with a third party.
This relationship is, as a general rule, created through the consent of both agent and
principal whereby the agent is granted the authority (power) to fulfil his principal’s
instructions.
The relationship may, however, be created through express or implied agreement.
Moreover, the courts may find that the parties have entered into an agency relationship
without even realising it. Clearly therefore, the law of agency involves three possible
relationships:
1. First there is the internal relationship between the principal and the agent.
Aims of the Lectures
Introduce our next area under consideration: the Law of Agency.
Focusing in particular on the definition of the agency relationship and the concepts of
consent and authority.
You should to be able to:
o Describe the basic relationship of agent-principal;
o Outline the fundamental notion of authority in its various iterations;
o Describe the different formulations of authority in Agency Law
o Have a good understanding of the situation in Watteau v Fenwick, including its
strengths and weaknesses
o Have a good understanding of the concept of apparent authority and how it differs
from other forms of authority
It is pretty straightforward, already looked at in other topics like nemo dat for example
What happens when an agent goes beyond their instructions? Or beyond their authority?
(managing director taking decisions beyond the scope of their authority or instructions, on
behalf of the firm) What kind of liability will there be?
The role of agency in Commercial Law
Agency is a relationship between one person, the principal, and another, the agent, under
which the agent will fulfil the intentions of the principal and act on his behalf generally
through the creation, modification or termination of contracts with a third party.
This relationship is, as a general rule, created through the consent of both agent and
principal whereby the agent is granted the authority (power) to fulfil his principal’s
instructions.
The relationship may, however, be created through express or implied agreement.
Moreover, the courts may find that the parties have entered into an agency relationship
without even realising it. Clearly therefore, the law of agency involves three possible
relationships:
1. First there is the internal relationship between the principal and the agent.
