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Summary KRG 120: Part 3: Agency
This document contains a summary of chapter 10 - 12 of the textbook Commercial Law 6th Edition by Nagel et al.
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PART 3: AGENCYPART 3: AGENCY................................................................................................. 1
Chapter 10: Introduction to the law of agency...................................................1
1. Introduction and basic concepts..................................................................1
2. Act of Agency.............................................................................................. 2
3. Authority...................................................................................................... 2
Chapter 11: Relationship between parties to agency.........................................6
1. Relationship between principal and agent...................................................6
2. Miscellaneous aspects of tripartite relationship...........................................7
Chapter 12: Special types of principals and agents............................................9
1. Special types of principals...........................................................................9
2. Special types of agents............................................................................... 9
Chapter 10: Introduction to the law of agency
1. INTRODUCTION AND BASIC CONCEPTS
Agency Also called representation
Legal phenomenon where authorized person (agent)
performs juristic act on behalf of another (principal)
Occurs in circumstances
o where inconvenient for principal to act in person
o where principal is incapable of concluding own
contracts
Examples:
o Natural person acting on behalf of company (juristic
person)
o Curators/ guardians act on behalf of mentally
incapacitated persons/ infants/ minors
o Estate agents
Tripartite relationship between
o Principal
o Agent
o 3rd party
To be an agent needs to have proper permission and act
within its confines
Authority can originate:
o via contract (mandate/ employment contract)
o by operation of law
o ratification
o estoppel
Agent will not be a party to legal relationship
Definitions Agent:
1
, person who has authority to represent another
Principal:
person who authorizes someone else to act on his behalf
will acquire rights/ duties under the act performed on his
behalf
Authority:
Power of consent
given to agent
to act in a way that binds the principal
2. ACT OF AGENCY
Act Refers to juristic act that agent performs on behalf of
principal
Legal consequences will be attributed to principal and not
agent
Provided agent was properly authorized
and to do so within confines of authority granted
In concluding a contract:
o All requirements for contractual liability must be
fulfilled by agent
Requirements
o Consensus
o Contractual capacity
o Contract must be legal
o Performance must be possible
o Formalities must be fulfilled
Acts that Where act is of personal nature
must be Marriage
performed If there are statutory rules requiring someone to perform
by the act himself
principal
in person
3. AUTHORITY
General Agent might incur personal liability if:
o He did not have proper authority
o He acted outside of his authority
Sources Contractual authority:
Can be granted:
o Orally
o In writing
Usually takes form of mandate
1. The mandator instructs the mandatary to do something on
his behalf (offer)
2. which the agent can then accept/ reject
3. Once he accepts, there is consensus
2
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