Chapter 4

Question 2

Agency bound by consent

Answer 2

Consent may be stated or implied orally or in writing

Unless agent is to execute a deed then consent must be in writing

Question 3

Estoppel

Answer 3

Stops you from going back on ur word

Words or visit of the principal give to a third party the impression that the person who participated to contract with the 3rd party is the agent of the principle

The 3rd party as a result acts upon this

Question 4

Agency of necessity

Answer 4

Arises when a person is faced with an emergency in which the property or interests of another party are in direct jeopardy. And in order toy preserve that property it becomes necessary to act for that person without their authority

Question 5

Agent of necessity will need to show that

Answer 5

• no practical way of contacting principal
• his actions arose from some pressing need for action
• good faith and interest of principal
• reasonable and prudent in the circumstances
• should be some contractual agreement between the parties

Question 6

Sachs v Mikles 1948

D agreed to store Cs furniture after some time had passed D needed the storage but couldn’t trace C so sold it. C sued d for concession. D pleaded agency of necessity

Answer 6

D lost as no emergency had arisen and D had sold the furniture for his own convenience

Question 7

Agency by ratification

Answer 7

Ratification validated past acts of the agent to create an agency relationship reterospectively

Question 8

Principal may only ratify the agent if:

Answer 8

-principal was in existence at time of agents act
-principal had legal capacity to make contract themselves at the time of act and time of purported ratification
-agent are time of making the contract names of sufficiently identifies the principal
-in a reasonable time

Question 9

7 Duties of an agent

Answer 9

Accountability
No conflicts of interest
Performance
Obedience
Skill
Personal performance
Confidence

Question 10

Accountability duty of an agent

Answer 10

An agent must provide full information to his principal of the transaction and for all monies arising as a result

Question 11

No conflict of interests duty of an agent

Answer 11

An agent must not put himself in a position where his own interests conflicts with that of the principal

Question 12

Performance duty of an agent

Answer 12

Agent who agrees to act as an agent for reward has a contractual obligation to perform their agreement take

Question 13

Obedience duty of an agent

Answer 13

Agent must strictly act in accordance with his principles instructions in so far as these are lawful and reasonable. Even if he believes disobedience is in the principals best interests

Question 14

Skill duty of an agent

Answer 14

Must undertake to maintain the standard of skill and care to be expected of a person in his profession.

Question 15

Personal performance duty of an agent

Answer 15

Agent is usuallly selected because of personal quality and one’s a duty to the principal to perform a tasks themselves with no delegation

Question 16

Confidence duty of an agent

Answer 16

Agent just keep in confidence what he knows about his provides affairs even after the agency relationship has ceased

Question 17

Boston Deep sea fishing v Ansell 1888

A, who was managing director of claimant accepted commissioned
From supposed on an order which he placed with them for goods supplied to agent

He was dismissed and the company sued to recover these commission

Answer 17

Company was justified in surfing him and he just account for these commissions

Question 18

3 rights of an agent

Answer 18

Indemnity
Remuneration
Lien

Question 19

Indemnity right of an agent

Answer 19

If agent must incurs any out of pocket expenses they should be entitled to get them reimbursed

Question 20

Remuneration right of an agent

Answer 20

Agent is entitled to be paid any agreed remuneration

Question 21

Lien right of an agent

Answer 21

Agent had the right to Excersise a lien owned by principal

(Right to retain goods that are pending payment of sums owed to him)

Question 22

3 sources of authority

Answer 22

Actual expressed
Actual implied
Ostensible/apparent

Question 23

Actual expressed authority

Answer 23

Expressly given by principal - express words - consent

Question 24

Actual implied authority

Answer 24

Authority to do all things that would be usual in the position/role of that agent

Question 25

Obstensible authority/apparent authority

Answer 25

Created by principal either exoressly or by inaction for example principal knows 3rd party believed someone is an agent but do bogging to correct them

Question 26

Watteau v fenwick P owner hotel and appointed old owner to be the manager of the hotel. Against expressed instructions A bought cigars on credit from a third party who sued P for the payment. P argued he was not liable on contract as A had no authority to hug cigars

Answer 26

Although A had no actual expressed authority it was unusual for managers to buy cigars on credit and as he not knows of the position T was entitled to assume A had the sufficient authority of a hotel manager

Question 27

Freeman and Lockyer v Buckhurst park properties K and H were property developer l. H lived abroad and K ran the busines. As a director K had no actual or apparent authors to enter into contracts as agents of the company and was never formally appointed as MD However H and other 2 directors allowed him to do so. A claimant sued company for work done on K instructions

Answer 27

No actual or implied authority however there was authority arisen from estoppel as K had apparent authority as they didn’t stop him