Creation of

Definitions Conditions agecy

Agent & principal Principal express appointment
person employed to do any act for must be at the age of majority and implied appointment
another or to represent another
in dealings with third persons sound mind. agency by ratification
Sub agent Agent agency by necessity
person employed by, and acting any person may become as an agent – agency by estoppel
under the control of, the original but if an unsound mind or a person below
agent in the business of the
agency. the age majority, the agent will not be
responsible
Authority of
Definitions an agent
Substituted agent actual authority
Where an agent, holding an apparent authority

TOPIC 9
express or implied authority to
name another person to act for
the principal in the business of the
agency, has named another
person accordingly, that person is
not a sub-agent, but an agent of
the principal for such part of the
business of the agency as is
entrusted to him.

Agents duty to
Effects principal
2 contract exist :
between principal & agent carry out principal‘s instructions
between principal & third party exercise proper care, skill & diligence
Effects : render proper account
Creation of a valid contract of agency communicate with principal
between an agent and a principle avoid conflict of interest
Creation of a valid contract of agency cannot make secret profit
between the principal and the third party not to delgate power to other