Agency
General
- Conclusion of juristic act, by an agent, on behalf of another person, the
principal w/third party.
- Act is performed by agent, but legal consequences will accrue to principal.
- Requirements:
Agent must intend to act on behalf of another person.
Third party must intend to contract w/principal.
Principal must exist when contract is concluded.
Agent must be able to perform act on behalf of principal.
Sources of Authorisation
- To be able to perform on behalf of principal, latter should authorise agent to
act on its behalf.
- Authority can be derived from different sources
1. Agent can be given authority if person is authorised by principal,
authorisation is unilateral juristic act by which one person gives another
power to act on his behalf
2. Agent may derive his authority from certain position/office that he holds
& authority will not be given to agent as such but agent will have it
automatically.
Termination of Authority
- Depends on type of authority that was given.
- Where authority depends on certain position, it will be terminated when agent
leaves position
- Authority given for purpose will terminate if purpose has been achieved
- Authority given for particular time will terminate when time has passed.
- Death of principal/loss of capacity to act will also terminate authority.
- Where principal provided authority, it may be terminated at any time.
- Termination is possible even if parties expressly agreed that authority will be
irrevocable.
- Few exceptions to this rule, such as where authority was given to provide
some form of security.
.
General
- Conclusion of juristic act, by an agent, on behalf of another person, the
principal w/third party.
- Act is performed by agent, but legal consequences will accrue to principal.
- Requirements:
Agent must intend to act on behalf of another person.
Third party must intend to contract w/principal.
Principal must exist when contract is concluded.
Agent must be able to perform act on behalf of principal.
Sources of Authorisation
- To be able to perform on behalf of principal, latter should authorise agent to
act on its behalf.
- Authority can be derived from different sources
1. Agent can be given authority if person is authorised by principal,
authorisation is unilateral juristic act by which one person gives another
power to act on his behalf
2. Agent may derive his authority from certain position/office that he holds
& authority will not be given to agent as such but agent will have it
automatically.
Termination of Authority
- Depends on type of authority that was given.
- Where authority depends on certain position, it will be terminated when agent
leaves position
- Authority given for purpose will terminate if purpose has been achieved
- Authority given for particular time will terminate when time has passed.
- Death of principal/loss of capacity to act will also terminate authority.
- Where principal provided authority, it may be terminated at any time.
- Termination is possible even if parties expressly agreed that authority will be
irrevocable.
- Few exceptions to this rule, such as where authority was given to provide
some form of security.
.
