ARCH 400

LAW OF AGENCY
AND THE ROLE OF ARCHITECT AS
AN AGENT
BUILDING LAW AND ARBITRATION

DEPARTMENT OF ARCHITECTURE
 THE LAW OF AGENCY
AGENCY: This is referred to the relationship between a
principal(client) and an agent whereby the principal, expressly or
impliedly, authorizes the agent to work under his control and on his
behalf. The agent is, thus, required to negotiate on behalf of the
principal or bring him and third parties into contractual relationship.
This branch of law (law of agency) separates and regulates the
relationships between:

• Agents and Principals;

• Agents and the Third Parties with whom they deal on their
Principals' behalf.
• Principals and the Third Parties when the Agents purport to deal
on their behalf.

CLASSES OF AGENT

1. UNIVERSAL AGENTS; This hold broad authority to act on behalf of

the Client, e.g. they may hold a power of attorney (also known as
a mandate in civil law jurisdictions) or have a professional
relationship, say, as lawyer and client.
2. GENERAL AGENTS; This hold a more limited authority to conduct
a series of transactions over a continuous period of time;
3. SPECIAL AGENTS; This are authorized to conduct either only a
single transaction or a specified series of transactions over a
limited period of time.

The principal, (client) is deemed to give, the agent authority to act

as;
• ACTUAL AUTHORITY:

This arises where the client’s words or conduct reasonably cause

the agent to believe that he or she has been authorized to act. This
may be express in the form of a contract or implied because what is
said or done make it reasonably necessary for the person to assume
the powers of an agent. If it is clear that the principal gave actual
authority to agent, all the agent's actions falling within the scope of
the authority given will bind the principal. This will be the result
even if, having actual authority; the agent in fact acts fraudulently
for his own benefit unless the Third Party was aware of the agent's
personal agenda. If there is no contract but the principal's words or
conduct reasonably led the Third Party to believe that the agent
was authorized to act, or if what the agent proposes to do is
incidental and reasonably necessary to accomplish an actually
authorized transaction or a transaction that usually accompanies it,
then the principal will be bound.

• APPARENT AUTHORITY

This authority is given if the principal's words or conduct would

lead a reasonable person in the third party’s position to believe
that the agent was authorized to act, say by appointing the
agent to a position which carries with its agency-like powers,
those who know of the appointment are entitled to assume that
there is apparent authority to do the things ordinarily entrusted
to one occupying such a position. If a principal creates the
impression that an agent is authorized but there is no actual
authority, third parties are protected so long as they have acted
reasonably
• IMPLIED AUTHORITY:

This type of authority is considered held by the agent by virtue of

being reasonably necessary to carry out his express authority. As
such, it can be inferred by virtue of a position held by an agent,
e.g. partners have authority to bind the other partners in the
firm, their liability being joint and several, and in a corporation,
all executives and senior employees with decision-making
authority by virtue of their position have authority to bind the
corporation.

If the agent does act without authority, the principal may ratify the
transaction and accept liability on the transactions as negotiated. This
may be express or implied from the principal's behavior, e.g. if the
agent has purported to act in a number of situations and the principal
has knowingly acquiesced, the failure to notify all concerned of the
agent's lack of authority is an implied ratification to those transactions
and an implied grant of authority for future transactions of a similar
nature.

LIABILITIES OF AGENT

Liability of agent to third party

If the agent has actual or apparent authority, the agent will not be
liable for act performed within the scope of such authority, so long as
the relationship of the agency and the identity of the principal have
been disclosed. When the agency is undisclosed or partially disclosed,
however, both the agent and the principal are liable. Where the
principal is not bound because the agent has no actual or apparent
authority, the purported agent is liable to the third party for breach of
the implied warranty of authority.

Liability of agent to principal

If the agent has acted without actual authority, but the principal is
nevertheless bound because the agent had apparent authority, the
agent is liable to indemnify the principal for any resulting loss or
damage.

Liability of principal to agent

If the agent has acted within the scope of the actual authority given,
the principal must indemnify the agent for payments made during the
course of the relationship whether the expenditure was expressly
authorized or merely necessary in promoting the principal’s business.

DUTIES OF AN AGENT

An agent owes a fiduciary duty to be loyal to the principal.

An agent must not accept any new obligations that are inconsistent
with the duties owed to the principal. An agent can represent the
interests of more than one principal, conflicting or potentially
conflicting, only after full disclosure and consent of the principal.

An agent must not also unduly enrich himself from the agency.
AGENCY RELATIONSHIPS

• employment procurement
• real estate transactions (real estate brokerage, mortgage
brokerage). In real estate brokerage, the buyers or sellers are
the Principals themselves and the broker or his/her salesperson
who represents each Principal is his/her Agent.
• financial advice (insurance agency, stock brokerage,
accountancy)
• contract negotiation and promotion (business management) such
as for publishing, fashion ,music, movies, theatre, show business
and sport.

Role of architect as an agent

In defining the limits authority of an architect engaged by a principal to

provide professional service, it is necessary to relinquish between
functions performed as an agent of the principal.

The principal duties of an architect are to observe, evaluate and report:

• To check all preliminary drawings structural/mechanical/electrical

for discrepancies.
• To invite contractors to tender
• To become generally familiar with the progress and quality of the
work completed
• To determine in general if the work is being performed in a
manner indicating that the work, when completed will be in
accordance with the contract document.
• To organize and chair and prepare minutes of site meetings
 • To issue instruction(architect’s instructions) when problem from
constraints on site
• To issue letter of warning to the contractor expressing their

concern over the way and manner he is handling the project.

Invitation to tender

The architect has to check all preliminary drawings

structural/mechanical/electrical for discrepancies, thereafter the

consultants should finalize their drawing and these form part of the bid

document.

As such the principal/client should direct the architect to invite

contractors to tender for the constructions.

Site handover

The architect should officially handover the site to the main contractor

Site Meetings

The architect organizes and chairs and prepares minutes of site

meetings

Letter of warning

These and in particular the attitude the contractor in the overall

handling of the project can the architect to take a decision to write to

the contractor expressing their concern over the way and manner he is

handling the project.

Issuance of certificates

The architect is bestowed with the responsibility of issuing final

certificate of completion. If the architect is satisfied that the contractor

has executed the project according to the contract document and to

issue certificate of payment to the contractor

References

Contract administration for architects and quantity surveyors. Fifth

edition- The aqua group

JCT standard form of building contract (private edition with

quantities.1963)

The architects in practice. Sixth edition by Arthur J. Willis.

Http: www.wikipedea.com
LIST OF MEMBERS
1. ADAMU SAHABI IDRIS U05AT1032
2. ALAGADA MANASSEH U05AT1033
3. MUHAMMAD MUSTAPHA MUHAMMAD
U05AT1035
4. TUKUR TARIHI SADIQ U05AT1036

5. ALHASSAN MUHAMMAD MUHAMMAD

U05AT1037
6. DANBABA JONATHAN REKOT U05AT1038
7. MUHAMMAD M. ABDULKARIM U05AT1039
8. MUSTAPHA SADIQ
U05AT1040
9. GAMBO HUSSAINI U04AT1129
10.SHEHU RAMATU BAMBALE U04AT1023