Agency 1.pptVIP

The Law of Agency 代理法 Introduction When people do business, they often deal with each other directly Buyer ? ? Seller However, sometimes they deal with each other using a “middleman” (or representative or intermediary) Buyer ? Middleman ? Seller Definition of Agency The legal term for a middleman or representative is an agent The person who is represented by the agent is called the principal Therefore, in our example Buyer ? Middleman ? Seller If the middleman represents the buyer Principal ? Agent ? Seller Definition of Agency Definition: An agent is a person who is authorized to represent another person, who is called the principal. The agent creates a legal relationship between the principal and a third party. Creation of Agency A person can only become an agent with the consent of the principal The consent may be express or implied Eg: In White v Lucas, a firm of estate agents claimed to act on behalf of the seller of a house In fact, the seller had told them that he did not want to use their firm Creation of Agency When the owner sold the house to a person introduced by the estate agents, the estate agents claimed commission as agents The court held that the seller did not have to pay commission as he had not agreed to their acting as his agent Creation of Agency Page 112 Scope of agent’s authority P 108 Creation of Agency The principal/agent relationship can be created in several ways Appointment Implication Ratification Operation of law Necessity Estoppel Agency by appointment This is the most common way of creating an agency The agent is specifically appointed by the principal to for a particular task or a general function It can be done by contract, but this is not necessary Implication Agency by implication is where it is assumed that the principal has authorized the person to act as his agent It is assumed that because the agent holds a particular position, then he has the authority of the principal to enter into contracts 是指一个人以他的言辞或行动使另一