AGENCY LAW

Agency is a relationship which exists between two legal persons in which the function of the
agent is to form a contract between the principal and a third party

1. WHO IS AN AGENT
An agent is a person who is empowered to represent another legal party, called the principal,
and to bring the principal into a legal relationship with a third party. Any contract entered into
is between the principal and the third party each of whom may enforce it. In the normal course of
events the agent has no personal rights or liabilities in relation to the contract.

1.1. Examples of agency relationship

There are many examples of agency relationships. Some of the types of agents include; company
directors, partners, factors, brokers, auctioneers, commercial agents among others.

- Company directors are agents of their company

- Partners are agents of each other in the partnership
- Factors – a factor is person whose job is to sell or buy gods on behalf of another person
- An auctioneer is an agent authorized to sell property at an auction on behalf of the seller.
- A broker is an intermediary who arranges contracts in return for commission

2. FORMATION OF AGENCY
The agency relationship can be created by the following ways;

- Express agreement
- Implied agreement
- By ratification
- By necessity
- By estoppel

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