BLAW10001 Study Guide - Final Guide: Buckhurst Park, Sussex, Secret Profit
CH 15 – AGENCY LAW
CONCEPT OF AGENCY:
• Person (A) can authorise Person (B) to act on their behalf
o E.g. corporations can only act through agents
• Authorised acts done by B on behalf of A have same effect as if done directly by A
o This means rights & obligations directly related to A, not B
AGENCY RELATIONSHIPS:
• Agency situation usually involves 3 persons:
o Person represented (Principal)
o Person who is the representative (Agent)
o Person who deals with agent representing principal (Third Party)
• Relationship between principal & agent usually contractual (principal employs agent)
• Legal contacts are created between agent (on behalf of principal) & third party
o The agent is not a party to the contract
AGENT’S AUTHORITY:
EXPRESS AUTHORITY
• Principal may expressly authorise agent to act on their behalf
• Express authority can be general (authority represents principal in any legal
matter) or specific (authority represents principal only in specified matters)
o SEE: Freeman & Lockyer v Buckhurst Park Properties
• Express authority can be given orally or written (but sometimes, authority must
be given in writing → buy/selling land)
IMPLIED AUTHORITY
• Agent may have additional authority to act by implication of express authority:
o Do anything normally/necessarily incidental to authorised acts
o Do anything an agent employed would normally have authority to do
o Do something that an agent by custom would so
▪ SEE: Australia & New Zealand Bank v Ateliers
• Implied authority is a form of actual authority → just simply given implicitly
instead of explicitly
APPARENT (OSTENSIBLE) AUTHORITY
• Authority to act due to the appearance of agent acting in the interests of principal
• Authority arises from the agent representing principal → agets atios are the
priipals atios
• Same effect as actual authority
DUTIES:
DUTIES OF AGENT (OWED TO PRINCIPAL)
• Agent required to carry out instructions from principal
o SEE: Bertram, Armstrong & Co v Godfray
• Agent must carry out their tasks with care & skill
• Agent must act in good faith → aget at ake seret profit
o SEE: Lintrose Nominees v King
• Agent can appoint sub-agent unless tasks require personal discretion
• Agent must keep proper accounts
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