Agency Essay

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AGENCY • 3 parties in an agency (who is liable to whom): - principal (P) = someone who authorises A to act/representhim/her - agent (A) = person authorised to act/represent P eg. negotiator - third party = the person brought by A into a legl r/ship with P (outside who the contract is with) • egs. of agency: - shop assistant - PARTNER: agent for their partner and themselves liable for own actions & other partner’s actions - International Harvester Case (ABL 11-020, p.824) normally a RETAILER NOT an agent (in the legal sense with a power to bind the P) – they run their own businesses (cant put consumer into contractual relations w/ manufacturer eg. when leave $50 deposit at a shoe shop, next day they go bankrupt, CANT claim from manufacturer for $50 as retailer NOT agents - BUT Shanklin Pier Case (ABL 6-030, consumer purchased paint from retailer under main contract after getting reassurance from him that paint would last for 7 yrs. Paint gave way after 3 mths, consumer successful in suing manufacturer under collateral contract (a contract for which the consideration is the making of the main contract, in this case, paint lasting for 7 yrs) for breach of warranty Creation of Agency • no formal requirements • exceptions: - sale of land – MUST be in writing - power of attorney – cant manage your own things, giving power to another to sign documents on your behalf - Insurance (agents & brokers) Act - agency by estoppel: - prevented from denying something - exists when someone is made to believe someone is your agent when they arnt or no longer (agency terminated) - Pole v. Leask P had A, then had a fall out w/ A. 3rd party paid A not knowing A had been terminated. P asked 3rd party for $$$ as A took it. Court found 3rd party doesn’t have to pay anymore. Types of Authority (ABL p.834) • expressed actual authority – gives authority thru

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