09 - AGENCY FORMAT - AGENCY NO 1 INTRODUCTION In order to determine whether is bound by contract agreed by we will need to look at the law of

09 - AGENCY FORMAT - AGENCY NO 1 INTRODUCTION In order...

This preview shows page 1 - 3 out of 4 pages.

AGENCY NO. 1 INTRODUCTION In order to determine whether __________ is bound by contract agreed by __________, we will need to look at the law of Agency. NO. 2 ACTUAL AUTHORITY (EXPRESS or IMPLIED) Express actual authority is that which has been specifically expressed, either orally or in writing, in the agency contract. Implied actual authority refers to the agent’s power to do all acts that are within reasonable customs and usages of the particular trade he is engaged in or which are reasonable incidental to the discharge of his duties as agent. Expressed actual authority will always override implied actual authority. Firstly, we will need to establish whether __________ has any actual authority. From the facts of the case, it is obvious that __________ does not have the actual authority to make this sort of contracts…. In the case, although __________ (principal) did not expressly give _________ (agent) actual authority, the fact that ____________________ implies that the agent has implied authority to agree to contracts of ____________________. NO. 3 OSTENSIBLE AUTHORITY As __________ (agent) does not possess actual authority, we will need to determine whether __________ (agent) has any ostensible authority. The validity of ostensible authority can be established by fulfilling five main criterions, as asserted in: Freeman & Lockyer v Buckhurst Park Properties (Mangal) Ltd (1964). Representation as to agent’s ostensible authority made to third party Firstly, there must be representation that agents had authority to enter into contract on behalf of the principle made to the third party. In this context, the title of __________ (position in firm), suggests that __________ (agent) has the authority to enter into the contract of the kind sought to be enforced. Hence, the first criterion is fulfilled. Representation made by principal or person who had actual authority of principal Secondly, representation must be made by the principal who had actual authority to manage the business or to aspects of which the contracts relates to. In this context, the title of _________ (position in the firm) was conferred upon by the company or principal, thus condition is met and representation was deemed to have been given by the principal. Third Party was induced by representation to enter into contract Thirdly, the third party must be induced by the representation to enter into the contract with the principal. In this context, it was clear that _________ (third party) relied on _________ (agent) work title and reasonable assumed that _________ (agent) had the authority to make decisions to enter into the contract. Principal must have the capacity to enter into the contract Fourthly, the principal must have legal capacity to enter into the contract … Third Party does not know agent lack authority
Lastly, the third party must not have knowledge of the agent’s lack of authority: Jurong Shipyard Pte Ltd v BNP Paribus (2008) . In this context, __________.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture