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Head 5 Agency

Agency

QuestionAnswer
An agent a person who negotiates and concludes a commercial or business transaction on behalf of someone called the principa
Examples of agents include travel agents, estate agents, insurance brokers and auctioneers and lawyers.
Privity of Contract An established principle of law that a person cannot acquire rights under a contract unless he is a party to that contract.
Agents are recognized by the law as having power to affect the legal rights, liabilities and relationships of the principal.
CAVMONT MERCHANT BANK VS. AMAKA AGRICULTURAL HOLDINGS LIMITED SCZ Judgment No. 2 of 2001 That where an agent, in making a contact discloses both the interests and names of the principal on whose behalf it purports to make a contract, the agent as a general rule is not liable on the contract to the other contracting party
American Restatement of the Law of Agency (2nd Ed,1958), para1(1) on Definition of Agency Agency is the fiduciary relation which results from the manifestation of consent by one person to another that the other shall act on his behalf and subject to his control, and consent by the other so to act.
(Bowstead On Agency (15th Ed, 1985), Art 1(1)) Definition of Agency Agency is the fiduciary relationship which exists between two persons, one of whom expressly or impliedly consents that the other should act on his behalf, and the other of whom similarly consents so to act or so acts. ??
G H L Fridman, The Law of Agency (6th Ed, 1990) p9) on Definition of Agency Agency is the relationship that exists between two persons when one, called the agent, is considered in law to represent the other, called the principal, in such a way as to be able to affect the principal’s legal position in respect of strangers to the r
Apart from having the power to affect the legal rights, liabilities and relationships of the principal, an agent may also affect the principal’s legal position in other ways e.g . he may dispose of the principal’s property in order to transfer ownership to a third party or he may acquire property on the principal’s behalf.
Company directors and other corporate officers as Agents As an artificial person, a company can only act through agents. This authority is usually vested in the Board of Directors. The authority may also be delegated to one or more Executive Directors by the company’s Articles of Association to manage the day-t
Partners as Agents Since a partnership has no separate legal identity from its members, every partner in a firm is an agent of the firm as well as all other partners for the purpose of the business of the firm, therefore, a partner who performs an act for the purpose of car
Employees as Agents of their employers Employees may be servants who work under contracts of service or independent contractors working under contracts for services==. An employee such as a shop assistant is an agent of the shop owner for the purposes of making contracts of sale with customers
Professionals as Agents Professionals acting on behalf of clients may be agents of those clients e.g. a lawyer conducting litigation on behalf of a client is the client’s agent and may have authority to settle the case which will be binding on the client (Consent Judgments).
Why Agency is essential in commerce, trade and tndustry Practical Limitations: Principals often lack the time, skill, or expertise to negotiate and enter contracts directly. Specialized Expertise: Agents (e.g., stockbrokers, estate agents) bring professional knowledge for sound business decisions. Legal Nece
The law recognizes an agent as having power to bind the principal in the following situations ?? (a) Where the principal gives prior consent to the agent’s actions. In such a situation, the agent is said to have actual authority. (b) Where the agent acts without the principal’s consent but the principal is stopped from denying the agents authority.
Created by: user-2015883
 

 



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