Agency

Question 1

Definition

Answer 1

The relationship between 2 partners whereby one, the agent, is considered in law to represent the other, the principal, in dealing with 3rd parties, with a view to forming a contract between the principal and 3rd party

Question 2

Principal

Answer 2

The party which instructs the agent to carry out certain tasks or duties

Question 3

Agent

Answer 3

The person who is authorised to act for the another , the principal, in the making of legal relations with 3rd parties

Question 4

3rd party

Answer 4

The party with whom the agent deals on behalf of the principal

Question 5

Agents duties

Answer 5

Duty to person instructions 
Duty to act personally 
Duty not to disclose confidential info 
Duty to avoid conflicts of interest 
Duty to exercise skill and care 
Duty to keep accounts

Question 6

Detach of warrenty

Answer 6

If the principal doesn’t ratify then the agent will be liable to 3rd party for breach of warranty of authority bc he warranted or promised that had authority which he didn’t posses

Question 7

Ending agency

Answer 7

Termination By agent / principal
Termination under the agency contract
Termination by frustration - unexpected events which are out with control

Question 8

Commercial agency

Answer 8

A self employed intermediary who has continuing authority to negotiate the sale of purchase of goods on behalf of and in the name of the principal