Documente Academic
Documente Profesional
Documente Cultură
Definition
Agency When legal rights/obligations between one party (principal) and another party
(third party) can be created/modified through intermediary party (agent)
Principal Agent Third party
When agent has authority, they can create contract between third party and principal
agent is not bound by any contract he signs he signs on behalf of third party
Agent = conduit (link)
Breach of contract principal sues third party vice versa agent not liable for contract
Effect of Agency
a. Dealing between agent and third party creates contract (or other legal repercussions)
between principal and third party
b. Principal generally liable to third parties for improper conduct of agent vicarious
liability
c. Agent acting within authority is not a party to any ensuing contract and the agent's
personal interest is not affected by the dealings
Southwell v Bowditch (1876) 1 CPD 374:
“A person known to have acted as a representative cannot be sued as if it was a party
to a contract”