LAW OF AGENCY: BY NECESSITY

Question 1

What is the section for agent by necessity?

Answer 1

Section 142 stated that, “an agent has authority to, in an emergency to do all such acts for the purpose of protecting his principal from loss.”

Question 2

What are the examples?

Answer 2

• Agent by necessity means a person may become an agent of another without being appointed as such under certain circumstances.
• For example, a wife who has been deserted by her husband and has no means of support can pledge for her husband’s credit for necessaries of life even against his wishes.
• In commercial transactions, when a person is entrusted with another’s property and it becomes necessary to act to preserve the property although he has no authority to do so.

Question 3

What are the conditions to be fulfilled under agency by necessity?

Answer 3

• There has to be a real and actual emergency.
• The agent must be entrusted with the principal’s property.
• The agent must act in good faith.
• It is impossible for the agent to get the principal’s instructions.

Question 4

What are the cases for agent by necessity?

Answer 4

1. Great Northern Railway Co v Swaffield
2. Springer v Great Western Railway Company
3. Jebarra v Ottoman Bank

Question 5

What happened in Great Northern Railway and Co v Swaffield?

Answer 5

• The plaintiff was instructed to bring the defendant’s horse to a destination.
• Upon arrival, there was no one to meet.
• Since the station master did not know the defendant or his agent, he instructed the horse to be put in a stable.
• The railway company claimed for charges for the stable from the defendant.
• But, defendant refused to pay.
• It was held that the plaintiff had acted as an agent of necessity at the time.
• Therefore, their claim was successful.

Question 6

What happened in Springer v Great Western Railway Company?

Answer 6

• Defendant agreed to carry plaintiff’s tomatoes to covent garden market.
• The defendant’s employees were on strike, so they unloaded the tomatoes.
• They found that some of the tomatoes went bad.
• The defendant decided to sell the tomatoes locally because they were not in saleable condition once the tomatoes arrived at covent garden market.
• Then, the plaintiff claimed damages based on market price of tomatoes in the covent garden market.
• It was held that the plaintiff was entitled to damages because the defendant failed to communicate with the plaintiff before they decided to sell the tomatoes.
• The defendant was liable as they were not agent by necessity.