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Chapter

Cover Commercial Law

3. An introduction to the law of agency  

This chapter discusses the law of agency, which is a complex, subtle, and often misunderstood subject. Understanding it is, however, important, especially given the extent to which it can affect commercial and other areas of the law. It has also been established that, for many businesses, the use of agents is invaluable, and significant areas of commercial activity could not continue without the existence of agency. Several basic foundation issues relating to the law of agency, such as the sources of agency law and the various types of agent that exist, are discussed here. The chapter begins by determining the legal meaning of ‘agency’. Unfortunately, whilst many definitions of agency exist, the concept is ‘notoriously slippery and difficult to define’, according to Bowstead and Reynolds. The chapter also looks at the various forms of agent, including the development of the commercial agent.

Chapter

Cover Sealy and Hooley's Commercial Law

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

Cover Commercial Law

9. Termination of agency  

This chapter discusses the various methods by which the authority of an agent can be terminated according to the law of agency. Numerous such methods exist, but they can be loosely organized into two distinct categories: first, termination by an act of the parties; second, termination by operation of the law. An agent’s authority may be terminated by the act of one or both of the parties. It should be noted that, whilst the acts discussed in the chapter will usually terminate the agent’s actual authority, the facts of the case might lead the court to conclude that the agent still has apparent authority to act on behalf of the principal.

Chapter

Cover Cheshire, Fifoot, and Furmston's Law of Contract

15. Privity of Contract Under the Law of Agency  

M P Furmston

This chapter discusses the law on contracting through agents. It covers the place of agency in English law; the formation of agency; the position of principal and agent with regard to third parties; unauthorized acts of the agent; and termination of agency.

Chapter

Cover Commercial Law Concentrate

12. The creation of agency and the agent’s authority  

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 focuses on the creation of agency and its three main parties: the agent, the principal, and the third party. The primary purpose of the agent is to bring the principal and the third party into direct contractual relations, with the principal taking on the rights and liabilities created by the contracts, provided the agent had authority to act. The chapter looks at several kinds of agent’s authority, including actual authority, apparent authority, and usual authority, and also considers agency of necessity as well as cases where the principal may ratify a transaction.

Chapter

Cover Sealy and Hooley's Commercial Law

7. Relations between principal and agent  

D Fox, RJC Munday, B Soyer, AM Tettenborn, and PG Turner

This chapter focuses on the rights and obligations of the principal and the agent between themselves, whether arising from a contract between them or from the fiduciary nature of their relationship. However, those rights and obligations may also derive from other sources, for example tort, statute, or the law of restitution. There is detailed consideration of the duties of the agent, such as the duty of care and skill and fiduciary duties, as well as the rights relating to remuneration, reimbursement and indemnity, and lien. The chapter also discusses the ways by which agency may be terminated.

Chapter

Cover Environmental Law

4. The form, function, and administration of environmental law  

Stuart Bell, Donald McGillivray, Ole W. Pedersen, Emma Lees, and Elen Stokes

This chapter focuses on national law, while also introducing international and European sources. Environmental law emerges at international, European, and national levels partly because the complex, interconnected nature of environmental problems requires a range of solutions at all of these levels. Some of the key characteristics of environmental laws that help to explain both the form and function of UK environmental law are examined here. The chapter also considers the institutions that are involved in the administration of environmental law and policy. The administration of environmental law and policy is carried out by a diversity of bodies, including government departments, regulatory agencies such as the Environment Agency, and a range of quasi-governmental bodies. The focus here is almost exclusively on UK structures and institutions. An underlying theme of the chapter is the way in which administrative structures are used to encourage the integration of environmental law and policy both internally—for example, through the creation of the Environment Agency as a unified regulatory agency—and externally; for example, through various methods of scrutinizing environmental policy across government departments.

Chapter

Cover Introduction to Business Law

10. The Law of Agency  

This chapter begins by defining agency—the relationship which exists between the agent and the principal—and considers the legal relationships created between an agent, his principal, and a third party. It then discusses the different methods by which an agency relationship may be created. The chapter explains the extent of an agent’s authority, the power of an agent to bind his principal, and the rights and duties of an agent. The relationship between agent, principal, and third party is explored and the different rules relating to disclosed and undisclosed agencies. Finally, the termination of an agency relationship is considered and examples of different types of agencies highlighted.

Chapter

Cover Trusts & Equity

2. Trusts in context  

This chapter places trusts in their contemporary social, economic, legal, and international context. It first discusses their significance to the world outside the lawyer’s office, and shows that they play an important social and economic role in the lives of ordinary people. The trust operates in key areas such as home, employment, and commerce. The chapter also examines the trust in the context of laws, focusing on how it corresponds to, and coexists with, other legal ideas such as contract, debt, powers, gift, agency, bailment, tax, and corporation, and concludes by looking at the international and comparative dimension of the trust.

Chapter

Cover Card & James' Business Law

8. The law of agency  

This chapter examines the key provisions of the law of agency. It highlights the importance of agency for the business sector and explains that an agency is a specific form of legal relationship between two persons whereby one person appoints another person to act on his behalf. An agency can be created by express or implied agreement, through the agent’s apparent authority, and when the principal ratifies the purported agent’s act. This chapter also discusses the duties and rights of the principal and agent, and the relationships that exist between agent, principal, and third party. Finally, the chapter discusses the various ways in which a relationship of agency can be terminated.

Chapter

Cover Mayson, French & Ryan on Company Law

19. Acting for a company: agency and attribution  

This chapter deals with the legal relationship of agency that exists between the company and the agent, explaining the process involved in an agent’s authentication and the execution of documents for the company they represent. It considers two ways in which a company may become contractually bound to another person (a ‘contractor’) under the provisions of the Companies Act 2006: through a written contract to which the company’s common seal is affixed, or when someone has made a contract on behalf of the company. It also discusses the company’s capacity to enter into contracts, including the ultra vires rule, and attribution by a court so as to impose criminal liability on a company. A number of court cases relevant to the discussion are cited.

Book

Cover Administrative Law

Timothy Endicott

Administrative Law explains the constitutional principles of the subject and their application across the range of twenty-first-century administrative law. The focus on constitutional principles is meant to bring some order to the very diverse topics with which you need to deal if you are to understand this very complex branch of public law. The common law courts, government agencies, and Parliament have developed a wide variety of techniques for controlling the enormously diverse activities of twenty-first-century government. Underlying all that variety is a set of constitutional principles. This book uses the law of judicial review to identify and to explain these principles, and then shows how they ought to be worked out in the private law of tort and contract, in the tribunals system, and in non-judicial techniques such as investigations by ombudsmen, auditors, and other government agencies. The aim is to equip the reader to take a principled approach to the controversial problems of administrative law.

Chapter

Cover Trusts & Equity

2. Trusts in context  

This chapter places trusts in their contemporary social, economic, legal, and international context. It first discusses their significance to the world outside the lawyer’s office, and shows that they play an important social and economic role in the lives of ordinary people. The trust operates in key areas such as home, employment, and commerce. The chapter also examines the trust in the context of laws, focusing on how it corresponds to, and coexists with, other legal ideas such as contract, debt, powers, gift, agency, bailment, tax, and corporation, and concludes by looking at the international and comparative dimension of the trust.

Chapter

Cover The Law of Trusts

11. Bare trusts subject to contractual obligations and agent’s instructions  

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 discusses a type of bare trust known as a nomineeship. Under a bare trust, a trustee holds property for a beneficiary on no specific trust terms; the trustee’s only obligation is to transfer the property to the beneficiary or to a third party as the beneficiary directs. Nomineeships typically combine the bare trust with a contract or relationship of agency. The first kind of nomineeship discussed is the solicitor-agent trust, followed by the Quistclose trust, and finally, unincorporated association trusts.

Chapter

Cover Family Law

6. Child Support  

Lara Walker

Child support in England and Wales is predominantly dealt with by the Child Support Act 1991. Many people believe that parents should provide support for their children, that separated parents should continue to provide support, and that single parents are entitled to support for the child from the non-resident parent (usually, but not always, the father). However, the difficult factor is finding a theoretical underpinning for this duty which is believed, by many, to exist. This chapter begins by looking at some of the theories on child support and problems associated with these theories. It then looks at the government policy on child support in order to establish whether the policy is built on any of these theories and, if so, how closely it actually relates to the theory.

Chapter

Cover Commercial Law

4. The creation of the agency relationship  

This chapter considers the various methods by which a relationship of agency can be created, namely by agreement, by ratification, by operation of law (including agency by necessity), and agency arising due to estoppel. It should be noted that an agency relationship might be held to exist, even though the parties or one of the parties do not wish for it to exist, or have expressly declared that such a relationship does not exist. Equally, the fact that the parties describe themselves as ‘principal’ and ‘agent’ will not conclusively establish that a relationship of agency exists, and the courts will disregard such labels if the realities of the relationship indicate that it is not one of agency. An agency relationship can therefore be created consensually or non-consensually. The chapter also discusses preliminary issues such as the capacity of agent and principal, and the formalities needed to create a relationship of agency.

Chapter

Cover Commercial Law

5. The authority of an agent  

This chapter places the authority of an agent as a central concept of the law of agency, identifying two principal types of authority, namely actual authority (both express and implied, and the various forms of implied authority, such as customary authority and incidental authority) and apparent authority. There is a third form, known as usual authority, but, as will be seen, the reasoning behind the cases that established this form of authority is highly suspect. All three forms of authority are discussed. Determining the existence and type of authority is vital as the legal consequences of an agent breaching their authority can be severe. The principal may not be bound by the agent’s actions and the agent may instead be personally liable. In addition, the agent may lose the commission/remuneration to which they were entitled, and may be found liable for breach of contract and/or breach of warranty of authority.

Chapter

Cover Commercial Law Concentrate

13. The relationships created by agency: the rights and liabilities of the parties  

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 focuses on the relationships created by agency, namely, the rights and liabilities of the agent, the principal, and the third party. It first explains disclosed agency as opposed to undisclosed agency with regard to the contract made by the agent, and then, after discussing the rights and liabilities of the principal and the third party, considers the rights of the agent against their principal, including remuneration, indemnity, and lien. The chapter examines the agent’s two kinds of duty to their principal (contractual duty and fiduciary duty) and discusses remedies for breach of fiduciary duty and how an agency may be terminated as well as the effects of termination. It concludes by highlighting the provisions of the Commercial Agents (Council Directive) Regulations 1993.

Chapter

Cover European Union Law

8. General principles of EU law and EU administrative law  

Herwig CH Hofmann

General principles of EU law are principles which govern all legal acts of the EU and those of Member States when acting in the scope of EU law. They have become particularly important in terms of administrative implementation of EU law by Union institutions and bodies as well as by Member States. This chapter addresses some of the most important of these principles concerning procedure and substance of implementation of EU law within a multi-level system. The principles discussed in this chapter include proportionality, the rule of law, good administration, information rights and the conditions necessary to ensure the right to an effective remedy. Each comes with examples.

Chapter

Cover Company Law

12. The constitution of the company: dealing with outsiders  

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 explores the legal aspects of transactions made with those outside the company (called outsiders or third parties), with emphasis on how they are determined to be legitimate and binding on the company. It also discusses the ultra vires doctrine and the three particular issues that make it a very tricky problem for the courts; the inclusion of the benefit of the company criterion to the ultra vires issue; the reform of ultra vires; and the application of the general principles of agency in determining whether the company is bound by a particular transaction. The chapter concludes by analysing reforms in the Companies Act 2006 concerning the authority of directors to bind the company or authorise others to do so.