The relationship of the agency

Running head: AGENCY LAW
AGENCY LAW
Name of the student
Name of the university
Author note

AGENCY LAW1
Issue
The issue involves in the instant case is whether Tanya will have to make payment of the
expense that is incurred by Wesley in respect of bush fire.
Relevant law
The significance of creating whether the legitimate association of agency exists and is so
to what degree can be acute at the time of assessing whether the individual had the right to enter
in the arrangement on behalf of another entity or individuals (Ong, 2018). The relationship of
the agency si the association that engages the capacity or authority of agents to establish or affect
the statutory relationship between another individual that is principal as well as the third parties.
In another manner, the relationship of agency engages the appointment of the individual or entity
that is agent to conduct on behalf of another person or the entity that is principal in the
transaction of dealing with the third parties (Oliver & Schoff, 2017). The relationship of agency
might evolve by the arrangement between the agent and principal either by means of implied or
express agreement in various methods. It may also evolve by an act that is conducted by an
agency is ratified by principal and estoppel (Colvin et al., 2018). Therefore one of the significant
characteristics of the relationship of the agency is the degree of the authority of the agent. The
agent under the law of agency should conduct within his authority. In case the agent act and the

AGENCY LAW2
action that is performed by the agent is out of the ambit of authority, for instance entering in the
arrangement with the third party on behalf of the principal and the same is outside the ambit of
authority hen the said arrangement will not be binding as against the principal (Carter, Wardell-
Johnson & Archer-Lean, 2017). The authority that holds by agent comprises of ostensible and
actual authority.
The principal will be accountable for the actions of agents that are executed in pursuance
to the authority. In addition to that, the principal is subject to liabilities that are enumerated in the
agency arrangement (Wright & Clibborn, 2020). This will vary depending on the circumstances
of the case, whereas the mutual liabilities of the principal involves the agent’s remuneration in
respect of the performance of duties as well as the agent indemnification. The association
between principal and agent is similar to that of solicitor and client that is the fiduciary
association. The agent in the relationship of agency owes a fiduciary obligation to the principal
that forces the agent to perform to the optimum interest of the Principal (Leipold & Winkel,
2016). The fiduciary obligation stop the agent from performing in a manner that disputes with
the principal’s interest—furthermore causing the agent to attain a personal, undisclosed
advantage due to the position of agent. Moreover, the obligation of the agent involves complying
with the condition of the agency arrangement, performing within the ambit of his authority
(Arstein-Kerslake & Flynn, 2017).In addition to that, to perform personally, that is, they should
not subcontract the obligations to other parties.
In the case of Watteau v. Fenwick [1893] 1 QB 346, it is the English case that is decided
by Queens bench. The case discourse the obligation of the undisclosed principal. It had been held
by the County Court that defendants held modest out to the world as they have general rights in
addition to that they were accountable for the allegations due to the implied rights that granted