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Agency Law
| Question | Answer |
|---|---|
| What is agency? | relationship between two persons, principle and the agent |
| Agents purpose | to form a contract between principle and a third party (must have strict authority to act on behalf of principle) |
| 4 methods of creating agency relationship | consent, estoppel, necessity and ratification |
| Necessity | emergency arises where person must act in order to protect the interests of another |
| conditions necessity | agent - no practical way of contacting principle pressing need for action - ie perishable goods ect Agent - acted in good faith in best interests of principle Action taken - reasonable and prudent in circumstances |
| Highly likely would already be contractual relationship | unlikely to bind parties on act of a stranger - rare in modern society tech (communication) |
| Ratification | agency relationship formed retrospectively - only validates past acts - does not give authority to enter contracts in future |
| Ratification conditions | Principle in existence at time of agents act principle must've had legal capacity to contract at time of action and at time of ratification agent - at time name or sufficiently identify principle |
| Further ratification rules | taken place within reasonable time positive act |
| Consent | Appointment by agreement - usually by way of contract - oral or written express or implied |
| Consent exception | if agent to execute deed on behalf of principle - agency must be created by deed |
| Estoppel (holding out) | words or conduct of principle - give impression to third party - that person who purports to contract is an agent of the principle - third party acts upon this as a result |
| Principle estopped | Prevented from denying later |
| Agent doesn't have actual authority | has apparent authority |
| Duties of an agent | Accountability, conflict of interest, performance, obedience, skill, personal performance, confidence |
| Accountability | Agent provide full information to principal of their agency transactions, and account for all monies arising Commission or reward as inducement = bribe |
| conflict of interest | Do not get in a situation where their own interests conflict with the principal |
| performance | Contractual obligation (for reward) to perform the agreed task – can refuse illegal act |
| obedience | Agent must act in accordance with instructions insofar as these are lawful and reasonable |
| skill | Undertake to maintain the standard of skill and care expected of someone in their profession |
| personal performance | Perform task themselves, not delegate to another |
| confidence | Must keep in confidence knowledge of principal’s affairs |
| Rights of an agent | Indemnity, remuneration, lien |
| Indemnity | Agent entitled to be repaid expenses and to be indemnified by their principal against losses and liabilities (provided acts done properly) |
| remuneration | Agent entitled to be paid any agreed remuneration for their services by their principal. If the amount has not been agreed then it should be ‘reasonable’ based on trade or profession |
| Lien | Right to exercise lien over property owned by principal |
| Authority | contract entered into principle only binding on principle and third party if agent acted within legal authority from principle |
| Ways authority can be given | -actual express authority -actual implied authority -ostensible or apparent authority |
| Express authority | expressly/explicitly given by principle to enter contract - ( if agent acts outside authority still may be apparent of implied) |
| Implied authority | Authority to act on behalf of the principal is inferred from the conduct of the parties and the circumstances of the case |
| Agents actual implied authority to: | do all things that are incidental to the actions expressly authorised To do all things that are usual by virtue of the agent’s office |
| Third parties are entitled to assume | the agent has implied usual authority unless they know to the contrary |
| Watteau v Fenwick | implied authority |
| Ostensible/apparent authority | arises when a representation is made by a principal to a third party that an agent has authority to act on their behalf when in fact, no such authority has been given. |
| apparent authority 2 | If the third party relies on this representation, the principal will be bound by the actions of the agent even though the agent has acted outside of their actual authority. Freeman & Lockyer v Buckhurst Park Properties (Mangal) Ltd. |
| Liabilities of parties - agent has authority known to be an agent | Principle and third party can sue/be sued - not agent |
| agent has authority not known to be agent | principle and agent can sue/be sued |
| agent has no authority | Principle cannot sue or be sued unless ratify - tort of deceit |
| Data protection act 2018 | -protect info about information concerning them -must comply with principles -penalties for non compliance |
| lawfulness, fairness and transparency | valid grounds to hold info - open about how it will be used |
| purpose limitation | clear purpose from start - obtain consent for new purpose |
| data minimisation | adequate relevant not excessive |
| Accurate | kept accurate - correct errors |
| storage limitation | don't keep to long |
| integrity/confidentiality | take adequate steps to protect |
| data subject rights | access, erasure, object, rectification .... |
| exempt from act | • Employers • Academic institutions • Scientific and historical research organisations • Individual rights are limited |
| goal 16 data protection act | peace, justice and strong institutions |
Created by:
TDuck