Notes for agency - P gives authority to A A acts on basis...

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P gives authority to A A acts on basis of authority A negotiates with 3rd party 3rd party concludes agreement with A A drops out Agreement binding on P
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Creation of Agency Express Appointment Implied Ratification – s. 149 Necessity – s. 142 writen or oral s. 140 From surrounding circumstances, ordinary course of business, words or conducts of principal - s. 140
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An agency is implied "if it appears from the statements and conduct of the parties and other relevant circumstances that the intention was to clothe the agent with such an appearance of authority that when the agency was exercised it would normally and naturally lead others to rely on the person's acts as being authori[s]ed by the principal."
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Express and implied Appointment – A appointed B to manage A’s cafe. An employment agreement was signed. (Contains express appointment to manage the cafe). They failed to mention about B’s authority to get fresh supply of sugar. Based on the nature of B’s job, he is impliedly authorised to get fresh supply of sugar for the cafe. * A allows B to buy clothes on his behalf and habitually pay for them. Agency may be implied Cases: Chan Yin Tee v William Jacks & Co (Malaya) Ltd [1964] MLJ 290; Summers v Solomon (1857) 7 E & B 879; Hely Hutchinson v Brayhead Ltd [1968] 1 QB 549
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Situations where implied appointment may arise i – husband (H) and wife (W) – living together W is H’s agent in acquiring necessaries that suit their lifestyle unless: (a) H expressly forbade W against pledging his credit; or, (b) H expressly warned tradesman against supplying goods to W on credit; or (c) W was sufficiently provided for with the goods in question; or (d) H gave sufficient allowance to W to buy goods without pledging H’s credit; or (e) The order was, though for necessaries was unreasonable considering H’s income at that time
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ii – partnerships – s. 7 of Partnership Act 1961 Partners are agents to each others – Condition- contracting in the course of the p/ship business Case: Mercantile Credit Co Ltd v Garrod [1962] 3 All ER 1103
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Ratification Ractifying - acts of A who acted beyond authority ; or - acts of a person who has no authority to represent another at all s. 149 - ratification binds P to the transaction as if A was properly authorised to act
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Notes for agency - P gives authority to A A acts on basis...

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