Contract of Agency

Agent: An agent is a person appointed to do

any act for another in dealing with the 3 rd
parties,
Principal: The person who has been
represented by agent is called principal. The
agent is the connecting link between the
principal and 3rd parties

Methods of creation of agency

Agency by express agreement

Agency by implied agreement
Implied agency includes:
a) Agency by estoppel
b) Agency by holding out
c) Agency by necessity
d) Agency by the operation of law

 i) Agents exceeding his authority in an

emergency
ii) A person entrusted with anothers
property
iii) Husband and wife
iv) Agency by ratification

Essentials of a valid ratification

Agent must act for principal

The principal must be in Existence
Contractual capacity of the principal
Knowledge of material facts
Reasonable Time
Legal Facts
Void Acts
No Partial ratification
Communication
Power of the principal to ratify
No loss to the 3rd party

Modes for the termination of

agency
Termination by the act of the parties
a) By agreement
b) Revocation by the principal
c) Revocation by the agent

Termination of agency by the

operation of law

Performance of contract
Expiry of time
Death and insanity
Insolvency
Destruction of the subject matter
Principal becoming alien enemy
Dissolution of a company
Termination of sub-agents authority