What is the definition of agency?
An agency is a legal relationship where one party (the agent) is authorized to act on behalf of another (the principal) to create legal relations with a third party.
What it the Chain of agency
Principal → authorizes → Agent → interacts with → Third Party
What is authority in agency?
The agent must act within scope of authority
What is consent in Agency?
Both Principal and agent must agree expressly or impliedly
What is legal capacity in Agency?
The principal must have capacity to enter into the contract.
What is express agreement in Creation of Agency?
In writing or orally
What is implied Agreement in Creation of Agency?
Based on conduct or circumstances
What is ratification in Creation of Agency?
when the principal approves an agent’s unauthorized act after the fact.
What is necessity in Creation of Agency?
arises in emergencies to protect the principals interest
What is estoppel in Creation of Agency?
when the principal allows a third party to believe someone is their agent.
When an individual revokes the authority of their agent they should inform the third parties, who regularly deal with the agent, of the change in circumstances in order to prevent the former agent having any continuing authority to act on their behalf.
True - As the third party is unaware that they are no longer the agent
What is express appointment?
Express appointment is when a principal clearly and deliberately appoints someone as their agent, using explicit words—either spoken or written—to give them authority to act on their behalf.
Can a valid agency relationship be created by express appointment? Yes or No
Yes
Can a valid agency relationship be created by ratification? Yes or No
Yes
What type of relationship are agents and their principles bound by?
A fiduciary relationship
What is A fiduciary relationship
Where one person is trusted to act in the best interests of another person
An agent may disobey their principal’s legal and reasonable instructions if they believe it to be in the principal’s best interests. True or False
False - They can only disobey if they were asked to commit an illegal or unreasonable act
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Companies Finance4
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C1) Legal Principles and International Law16
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C2) Contract Formation18
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C3) Termination of Contract10
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C4) Agency18
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C5) Negligence10
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C8) Companies Ownership and Management4
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General15
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C6) Types of Trade9
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C7) Companies: The consequences of incorporation22
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C)8 Companies: Ownership and Management20
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C)9 Companies Finance13
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C10) Insolvency Law5
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C)11 Criminal Law9
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C12) Employment Law9
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C13) Data Protection Law9
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General 17.05.202512
