AgencyA. (ISSUE) The issue is whether there is an agency relationshipbetween principaland agent.An agency relationship arising from actual/ostensible/ratification/operation of lawis most probable in this case. 1.Actual authority (authority and scope known to agent and principal)Actual authority refers to the authority the agent actually has, which could be conferred expressly or by implication: Hely Hutchinson v Brayhead Ltd and Anor (1968).In Hely-Hutchinsonat , Lord Denning MR has previously opined that “[Actual authority] may be expressed or implied. It is express when it is given by express words, such as when a board of directors pass a resolution which authorises two of their number to sign cheques. It is implied when it is inferred from the conduct of the parties and the circumstances of the case, such as when the board of directors appoint one of their number to be managing director. They thereby impliedly authorised him to do all such things as fall within the usual scope of that office.”In this case, there is actual express authority conferred upon Agent to ______ as the Principalhave orally/ written expressed _____. ORIn this case, there is no actual expressed authority of Agent. However, there is actual implied actual authority of Agentarising from the ___(i/ii/iii)_____because of (see case).(i)implied authority to do all such things that are incidental to and necessary for the execution of that express authority. (ii)implied authority to do things that are normally or ordinarily done in that trade, business or profession. (iii)acquiescence of the principal (always agreeing to someone’s actions) .Since Agent’sactions are within the actual authority that were expressly or impliedly conferred upon by his principal, contract is binding between Principal and 3P.