Summary KRG 120: Part 3: Agency

PART 3: AGENCY


PART 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


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