Академический Документы
Профессиональный Документы
Культура Документы
Relationships
- Agent Principal
- Principal 3rd Party
- Agent 3rd Party
Miscellaneous issues:
- How to prove apparent (ostensible) authority?
- How can a principal ratify a contract?
Agency
An agent is a person who, through the authority conferred upon him by his
principal, is empowered to establish legal relations on his principals behalf with
a 3rd party. (pg 418)
The principal is the person whom the agent represents.
The 3rd party is the person whom the agent deals with on behalf of the principal.
The general rule is that an agent is not liable to his principal or 3 rd party as long
as he acts within the scope of authority given to him by his principal.
Agent
Principal
Contract
3rd party
Relationships
Principal - Agent relationship
(Super rare, unlikely to appear)
Agent
1) The agent must act according to the terms of appointment and follow the
instructions of the principal
Case to cite: Bertram, Armstrong & Co v Godfray [1830]
2) The agent must carry out his duties with reasonable care and skill.
Standard required would be that which a reasonable man would expect
from an agent in that field of activity.
Case to cite: Keppel v Wheeler [1927]
3) The agent has a duty to keep true and proper accounts
4) The agent owes fiduciary duties to the principal (in good faith)
The agent cannot make secret profits or gains
Case to cite: Hippisley v Knee Brothers [1905]
The agent cannot accept bribes
The agent cannot have conflict of between his own interests and his
duties as an agent
Once it is established that the agent does not have the authority to act, would
the principal want to ratify the contract? If yes, contract binding on P and 3P.
Principal must be disclosed
See miscellaneous issues to determine if ratification is applicable
Miscellaneous issues
How to prove apparent (ostensible) authority (pg
421)?
Case to cite: Freeman & Lockyer v Buckhurst Park Properties (Mangal) Ltd [1964]
(pg 423)
1) Was there a representation made to the 3rd party indicating that the agent
had authority?
Can be written, oral or implied through conduct
Eg. appointing agent to position
2) Was this representation made by the principal or a person with the
principals authority to make such a representation?
Principal must be disclosed
Case to cite: Viknesh Dairy Farm Pte Ltd v Balakrishnan s/o P S Maniam
[2015]
3) Was the 3rd party induced by the representation and relied on it to enter
into the contract?
4) Does the 3rd party know for a fact that the agent has no actual authority? If
yes, 3rd party cannot argue apparent authority
Case to cite: Jurong Shipyard Pte Ltd v BNP Paribas [2008]
If points 1, 2 and 3 are fulfilled, apparent authority present.
Only 3rd party can plead apparent authority
Upon termination of agency, actual authority ends immediately, but notice must
be given to 3rd parties to negate the agents apparent authority