LAWS108 Midterm: LAWS108 COMMERCIAL LAW SEMESTER 2 NOTES
Document Summary
Relationship between two parties based on an agreement. One (agent) is authorized by the other (principal) to act on principals behalf. Enables agent to make contract between principal and third party. An agent is a person with express or implied authority to act for a principal with the general object of bringing the principal into legal relations with a third party. The mere use of the word agent is not conclusive of the existence of an agency relationship in law. International harvester co of australia pty ltd v. [commercial law, para 2. 20/turner and trone para 13. 20] The relationship of principal and agent can be created: Necessary where the agent is required to execute any instrument under seal on behalf of their principal. A verbal offer followed by acceptance in writing or verbally is enough to conclude a contract on agency for most purposes. In practice, it is usually desirable that the appointment agent be done in writing.
