Agency-Revision Flashcards
(51 cards)
Definition of an agent- Bowstead and Reynolds
Fiduciary relationship- between 2 persons- principal and agent- agent has express/ implied authority to act on behalf of P and affect his legal relations- no general formalities.
Actual Authority
P consents in advance to A’s actions- gives A actual authority to act in such a manner that binds P- consent may be express or implied
Apparent Authority
A appears to 3rd party to have authority, whether they actually have it or not- must be due to representations by P, and not A- again, binds principal
Usual/ Customary
Exists where A has the authority of a person who, in his position, would usually/ customarily have- may expand A’s scope of authority, or lay independent to it
Ratification
Exists where A does not have authority at the time of acting on P’s behalf- P later ratifies/ adopts the agents actions- thus becoming bound by them
“Hely-Hutchinson”
MD- appointed- impliedly authorised to act within scope of ordinary MD duties.
NB/ lack of objection may be taken as permission.
NB/ Implied authority can never contradict express direction
“Kett v. Shannon”
FAX- Know from case note, mechanic and the FIAT- ratio: apparent authority must be purported by P and not A. Belief of 3rd party is not enough to establish apparent authority
“Freeman & Lokcyer”
Test for apparent authority:
- Representation must be made by P, whether by word or conduct.
- Principal must be capable of making such a representation
- Third party must rely on the representation
Reliance, Apparent Authority, “Freeman & Lokcyer”
Reasonable- Objectively Justifiable in All Circumstances
Causal- The 3rd Party would not have entered into the contract otherwise
“Armagas LTD”
Reliance, but not objectively reasonable- representation must come from P, not the assurances of A
“Turquad”
Reliance may be reasonable and casual via company conduct, rather than actual word/ written representations
“Livingston”
Merchant acted beyond actual authority, but within customary authority- bound principals- ‘Agents, regardless of actual authority, may have implied authority to act according to usual customs, unless expressly restricted
“Bolton Partners”
“Ratification makes acceptance binding retroactively, making the act valid as if authorised from the beginning”
“Watteau v. Fenwick”
The cigar and bovril case- P bound under fact specific circumstance- “the outside world still believed Humble was the owner, especially as his name was displayed “as proprietor” above the door’
Agency, By Ratification, Prerequisites- White
- A acting, or purporting to act, for P
- P must be in existence, competent and capable of being ascertained by T
- P can ratify lawful/ unlawful acts, but cannot ratify a nullity.
- P must ratify within a reasonable amount of time
- P must have full knowledge, of all relevant circumstances
“Carey”
In ratification, the actual identity of P does not need to be disclosed, but there must be enough info available for T to find them if they so wish
“O’Connell”
‘Non-disclosure of irrelevant enquiries, or ludicrous artificial offers, shall not deem ratification invalid’
‘For ratification to be deemed invalid… non-disclosure must relate to information which, according to ordinary business standards, could be said to be material to a decision to accept or reject a particular offer”
“Barclay’s Bank”
Bank and Solicitor case- “The actual method of ratification should be express or implied”- “Non objection &/or acceptance of proceeds will constitute for the purposes of ratification”
“Brown”
Goods-in-transit, unauthorised agent attempted to stop them, act could nit be ratified by P a time later as the goods had already reached their destination, and a principal cannot ratify a nullity.
“Lloyd v. Grace (1912)” and deceit
Principal will be held liable for A’s deceit, or other misrepresentations, if A was acting within their authority.
“Refuge Assurance” and deceit
P need not have knowledge of A’s deceit to be liable for it
Disclosed Agency- Def
3rd party aware A is acting as an agent, and thus on behalf of another at the time of contracting- identity is insignificant
Undisclosed Agency- Def
3rd party under the belief that A is acting on their own behalf, and thus not for any other person
Why does the disclosure of agency matter?
- Effects P’s ability to ratify A’s actions
- Effects A’s liability to T
