Agency is the relationship that exists where one person (the principal) authorizes another (the agent) to act on its behalf and the agent agrees to do so. This Chapter discusses the modes of agency creation and the different kinds of agency, and the effect of agency: (a) the relations between the principal and third parties; and (b) the relations between the agent and third parties.
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Chapter
23. Agency
Jack Beatson, Andrew Burrows, and John Cartwright
Chapter
15. Constructive trusts and fiduciary duty
Titles in the Complete series combine extracts from a wide range of primary materials with clear explanatory text to provide readers with a complete introductory resource. The chapter looks at the nature of fiduciary duty and how someone becomes a fiduciary. The liability of fiduciaries for breach of trust is considered. Bribery and secret profits are explained, the meaning, nature, and approaches to constructive trusts are studied, and the various circumstances in which constructive trust might emerge are discussed. These include remedial and institutional constructive trusts. The liability of third parties (strangers) in constructive trusts as trustees de son tort, dishonest assisters, and those in knowing receipt are considered. The meanings of ‘knowledge’ and ‘dishonesty’ in this area of the law are explained, as is the level of liability of constructive trustees.
Chapter
6. Privity and third parties
Titles in the Core Text series take the reader straight to the heart of the subject, providing focused, concise, and reliable guides for students at all levels. This chapter examines the doctrine of privity in the law of contract and the position of third parties. The doctrine of privity dictates that a person who is not a party to the contract cannot be granted contractual rights by the contract or be placed under contractual obligations by it. It explores the rationale of the principle, discusses the authorities that established it, and looks at the various common law exceptions to the rule that a third party cannot acquire rights under a contract. This chapter also explores in detail the statutory exception to privity provided in the Contracts (Rights of Third Parties) Act 1999.
Chapter
10. Third parties
This chapter considers two principal questions: firstly, may a person who is not a party to a contract acquire rights under it? Secondly, can a contract impose duties on a person who is not a party to it? With some exceptions, the common law answered ‘No’ to both. A contract between A and B cannot be enforced by a third party, C, even if the contract is for the benefit of C. Nor can a contract between A and B impose burdens on C. Following the Contracts (Rights of Third Parties) Act 1999 there is now a statutory exception to the principle that C acquires no rights under a contract between A and B. Under this Act, a third party might be able to enforce a term of the contract if the contract expressly provides that they may, or if the relevant term purports to confer a benefit on them.
Chapter
2. The distinction between legal and equitable interests
Each Concentrate revision guide is packed with essential information, key cases, revision tips, exam Q&As, and more. Concentrates show you what to expect in a law exam, what examiners are looking for, and how to achieve extra marks. This chapter distinguishes between legal and equitable interests in land. The intervention of equity in land law can be seen in two key areas: the development of new equitable interests in land, and the availability of equitable remedies to enforce interests in land. To be legal, the interest must be listed under s 1(2) Law of Property Act 1925 (LPA 1925) and certain formalities must be met in its creation, notably being granted by deed (s 52 LPA 1925). Where these formalities are not met, the interest may have equitable status instead, but only where equity can find a specifically enforceable valid contract to create the interest. All other interests in land can only ever be equitable (s 1(3) LPA 1925). The status of an interest in land as either legal or equitable traditionally determined the rules of enforcement of that interest against third parties: legal interests bound all third parties, whereas equitable interests would only bind third parties who were not bona fide purchasers for value of a legal estate without notice.
Chapter
12. Third Party Rights (the Doctrine of Privity)
This chapter highlights the doctrine of privity of contract; that means it is about the rights and obligations of third parties. The starting point is the basic common law rule of privity. At common law, third parties have no general right to enforce contracts made by others. Likewise, contracts made by others cannot impose obligations on third parties. This is a fairly straightforward principle and is based on sound reasons, but in practice privity has become a complex area. The existence of the rule resulted in a range of clever devices being developed to get around it, all of which are of commercial importance. And the rule against parties enforcing contracts made by others in particular was also severely criticized over the years for various reasons. The basis for such criticism resulted in some partial exceptions being developed in the case law, and ultimately in a statute—namely the Contracts (Rights of Third Parties) Act 1999. This complicates matters further because the Act only applies in certain circumstances and its application can be excluded by the terms of the contract. As such, there will be circumstances in which the common law exceptions and devices remain relevant, and they must therefore be studied alongside it.
Chapter
16. Termination of Membership
This chapter explains how a person ceases to be a member, and what the consequences of termination of membership is, both in terms of relations with third parties and in terms of relations between the departing member and the LLP. It considers the application of post-termination controls on a departing member.
Chapter
6. Relations with third parties
D Fox, RJC Munday, B Soyer, AM Tettenborn, and PG Turner
This chapter examines how contracts made by the agent affect the legal relations of the principal with regard to third parties. When considering the rights and liability arising under a contract made by an agent, it is important to draw the distinction between whether the agent was acting for a disclosed or undisclosed principal, the latter being an important feature of English agency law largely unknown to civil lawyers. This chapter discusses generally the relations between principal and third party, and between agent and third party, in the context of both disclosed and undisclosed agency.
Chapter
12. Third parties
This chapter explores how lawyers can balance their obligations to promote their clients’ interests and their obligations to third parties. While there are circumstances in which duties are owed to third parties, these are limited. The law and ethical codes struggle to ensure that, even when these duties are imposed, they are not used to undermine the relationship between lawyer and client. The regulations ensure that the lawyer never acts against the best interests of the client. The chapter explores the guidance issued by the professional codes of practice. It also looks at the practice of giving an undertaking, which is an important aspect of some lawyer’s work.
Chapter
VII. Character in general
This chapter examines the evidence of the character of parties, witnesses, and third parties. Evidence of character has never been a model of coherence or clarity either at common law or under statute. It is complex, both in the connotation and means of proof of the concept of character, and in the variety of contexts in which it arises. The concept embraces both disposition, commonly described as propensity, to act in a relevant way, and sometimes the means of proof of such relevant disposition, either through reputation, the expressed belief of others of the subject's disposition, or of acts of the subject from which such disposition may be inferred. It may be relevant in any form of proceedings, and at any stage of a trial.
Chapter
27. Bills of lading and contracts of carriage
This chapter focuses on the key concepts of bills of lading and contracts of carriage. It highlights the importance of contracts of carriage since goods sold to an international sale contract need to arrange transportation to particular destinations. Goods are often carried under a waybill contract under which the carrier undertakes to deliver the goods to a named consignee at the port of destination. The chapter considers the bill of lading as a document of title, as evidence of the contract of carriage, and as a receipt before listing alternatives to bills of lading. It also looks into tort claims against third parties and claims against the carrier.
Chapter
6. Relations with third parties
This chapter focuses on third parties. It specifically looks at the differences between disclosed and undisclosed agencies. The agency is disclosed where the agent reveals that they are acting as an agent; the agency is undisclosed where the agent does not reveal the fact of the agency at all and purports to be acting in their name and on their behalf. The chapter then discusses the agent's warranty of authority to the third party who contracts with the agent's principal. It considers the liability for misstatements as any misrepresentation may give the representee a right to rescind any contract made in reliance on it.
Chapter
4. Privity and third party rights
Each Concentrate revision guide is packed with essential information, key cases, revision tips, exam Q&As, and more. Concentrates show you what to expect in a law exam, what examiners are looking for, and how to achieve extra marks. This chapter discusses the doctrine of privity and third party rights. The doctrine of privity of contract provides that a person who is not a party to a contract (called a ‘third party’), cannot acquire rights under or enforce the provisions of that contract or rely on its protections even if the provisions were intended to benefit that third party. At common law there are complex, and sometimes artificial, ways to avoid this conclusion. More significant nowadays is the attempt to reform this principle by legislation in the Contracts (Rights of Third Parties) Act 1999, allowing some third party beneficiaries to enforce the provisions of contracts.
Book
Jack Beatson FBA, Andrew Burrows FBA, QC (Hon), and John Cartwright
Anson’s Law of Contract offers an accurate and authoritative account of the law and its underlying principles. This 31st edition continues to provide comprehensive and detailed coverage of all topics covered on modern contract law courses, and has been revised and updated to incorporate all notable developments in case law, legislation, and academic debate. Topics covered include, in the first part, the agreement, the formation of the contract, and promissory estoppel. The second part looks at the terms of the contract, exemption clauses, and unfair terms. Next the book looks at incapacity, mistake, misrepresentation and non-disclosure, duress, and illegality. The fourth part considers performance and discharge. The next part looks at damages and specific remedies. The sixth part of the book covers third parties, assignment and agency in terms of the limits of the contractual obligation.
Chapter
20. Personal Liability of Third Parties
This chapter examines the personal liability of third parties when there is a breach of trust or breach of fiduciary duty. It explains that there are two types of personal liability of third parties. One is receipt-based liability when a third party has received property in which the beneficiary or principal has an equitable proprietary interest and the other is accessorial liability when the third party has encouraged or assisted a breach of trust or fiduciary duty. The elements of different causes of action relevant to receipt-based liability and accessorial liability are examined, notably the action for unconscionable receipt and the action of dishonest assistance. The controversial question of whether liability should be strict or fault-based is considered and, if the latter, the nature of the fault requirement.
Chapter
3. Bailment
D Fox, RJC Munday, B Soyer, AM Tettenborn, and PG Turner
This chapter deals with bailment, defined as a transaction under which a bailee lawfully receives possession of goods from a bailor for some purpose. Examples of bailment from commercial law include warehousing, carriage, the deposit of property to have work done on it, leasing, and pledge. A buyer under a sale or return transaction is, pending acceptance or rejection, a bailee of the goods. After explaining what a bailment is, the chapter considers types of bailment and three requirements for a bailment: transfer of possession; ownership remaining in the bailor, or at least not passing to the bailee; and consent by the bailee. It then examines the bailee’s liability and the burden of proof with respect to bailment before concluding with an analysis of bailment involving third parties, focusing in particular on sub-bailment.
Chapter
26. Non-possessory security
D Fox, RJC Munday, B Soyer, AM Tettenborn, and PG Turner
This chapter focuses on non-possessory security. It begins with a discussion of mortgages and their definitions. A mortgage involves the transfer of ownership of property from the mortgagor (the debtor or a third party) to the mortgagee (the creditor) as security for a debt or other obligation. The chapter then considers equitable charges and their definition, which include fixed and floating charges, before moving on to consider equitable liens. The chapter also examines statutory control with respect to non-possessory security, with particular emphasis on the protection of third parties and debtors.
Chapter
12. Membership
This chapter explains what membership of an LLP entails. It explains how a person becomes a member of an LLP, and the different types of membership that are recognised in law. It considers case law on the question as to whether a person can be both a member and an employee, and both a member and a worker. Finally, it explains how a person might be disqualified from being a member of an LLP and the consequences of such a person acting as a member whilst disqualified.
Chapter
17. Co-ownership and Priorities: The Defences Question
All books in this flagship series contain carefully selected substantial extracts from key cases, legislation, and academic debate, providing able students with a stand-alone resource. This chapter deals with the priority rules applicable where co-owned land is sold or mortgaged. It concentrates on overreaching. It is theorized that s 27(1) of the Law of Property Act 1925 (LPA 1925) provides the basis of overreaching. Other theories include that the basis of overreaching lies in the doctrine of conversion and the trustees’ powers of disposition. The chapter considers the preconditions for overreaching to take place and the practical division that arises between trusts with one and two (or more) trustees. It explores the contentious question of the effect on overreaching where a transaction constitutes an intra vires or ultra vires breach of trust and the protection available to purchasers in those circumstances where a breach of trust precludes overreaching. In doing so, possible third-party liability in knowing receipt and dishonest assistance, and the Supreme Court’s analysis in Byers v Saudi National Bank is considered.
Book
Paul S. Davies
Driven by exposition of the leading cases, JC Smith’s The Law of Contract offers the perfect balance between accessibility and authority. The strong focus on cases guides the reader through the intricacies of contract law with expert analysis ensuring key points are clear. The text begins with an introduction to contractual rights and duties. It looks at objectivity in contract law, the formation of bilateral and unilateral contracts, contract as agreement, offeror and offeree, estoppel, legal relations, and the role of third parties. It also considers the terms of the contract, interpretation of the contract, implication and rectification, and exclusion clauses and unfair terms. It goes on to look at issues such as duress, undue influence, good faith, capacity, illegality, contractual assumptions, breach of contract, remedies and damages, and remedies beyond compensatory damages.
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