What you will learn? 4.1Ascertain nature of agency 4.1.1Define law of agency a. principal b. agent 4.1.2 Explain formation of agency by way of: a. express appointment b. implied appointment c. ratification d. necessity e. estoppel 4.2Discuss types of agency 4.2.1Interpret types of agency by function a. broker b. factor c. commission agent d. delcredere e. powers of attorney 4.2.2Interpret types of agency by authority a. actual b. apparent 4.3 Demonstrate the relationship between principals and agents 4.3.1 Apply rights and duties of an agent toward his principal 4.3.2 Apply rights and duties of a principal toward his agent 4.4 Outline termination of agency 4.4.1 Explain termination of agency Reference: Contract Act 1950 Assessments: Quiz 2 & End Of Chapter
AGENCY ACCORDING TO JURISDICTION / SCOPE OF AUTHORITY S139–the authority of an agent may be expresses or implied i.S140-Express/ actual authority authority given expressly in oral or writing Also exist in the following circumstances a-all such power or acts are necessary or proper to execute the express authority b-the circumstances of the case c-the custom or usage of trade and d-the situation and conduct of the parties ii.Implied/ apparent authority Authority not expressly given but may be presume to exist and the principal is liable for the act of the agent i.By the words or conduct of the principal leads 3rdparty believed the agent has authority ii.The agent had authority to act but was terminated by the principal without notice to 3rdparty
RIGHTS AND OBLIGATIONS OF PRINCIPAL 1. Pay agent commission S172–an agent should not be prevented form receiving his commission unless the agency relationship is gratuitous Dolphin v Harrison, San Miguel Pty Ltd–the Principal is only obliged to pay the agent if the agent complied with the term of the agency agreement and when the agent has earned the payment 2. Not to prevent agent to earn commission by what ever means. 3.To indemnify and reimburse the agent for acts done in the exercise of his duties provided a)Where the agent has incurred losses or liabilities in performance of the contract of agency b)Where the agent causes injury to 3rdparty in execution of his authority of agency c)Where the agent suffers injury during the cause of his duty due to the principal’s negligent or want of skill
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