Commercial Law - Agency Contract
Question 1.
Outline and describe the ways in which an Agency Contract may be established.
Agency
According to Nicole Busby, an agency is a contractual relationships that entitles one party to act on behalf, or in favour of, the other party in contractual arrangements with a third party. In this regardthese circumstances, the former is known as an “agent” and the entity on whose behalf the agent performs is called a “principal”.
Generally, the agency relationships arises in commercial transactions, partnership and employment.
The term “agency” in commercial law is represented in the Latin phrase, qui facit per alium, facit per se, i.e. the one who acts through another, acts in his or her own interests.
In terms of agreeing an Agency Contract between the parties, tThe Robert Barry & co. v Terence Robert Doyle and another 1998) case illustrates the use of oral communications in commercial contracts which has binding effect to the parties as well. Yet, it is better to exercise a written type so as to avoid further potential technical problems.
According to the Property Misdescriptions Act 1991 s(5)(c), a statement may be made by pictures or any other method of signifying meaning as well as by words and, if made by words, may be made orally or in written form.
An Agent can only bind a principal into a contract with a third party if he has the necessary authority. That is, the agent's authority may be express (either clearly defined, commonly written, and limited to specific areas) or implied (arising out of circumstances, common for the type of business etc.). An agent is not entitled to exceed that authority. However, if he does, the principal may still be held legally responsible for acts entered into by the agent on the principal's behalf in case the act in question was within the apparent or ostensible authority of the agent. The remedy of the principal is limited to personal claim against the agent. There are general agents and special agents.
The formation of
Outline and describe the ways in which an Agency Contract may be established.
Agency
According to Nicole Busby, an agency is a contractual relationships that entitles one party to act on behalf, or in favour of, the other party in contractual arrangements with a third party. In this regardthese circumstances, the former is known as an “agent” and the entity on whose behalf the agent performs is called a “principal”.
Generally, the agency relationships arises in commercial transactions, partnership and employment.
The term “agency” in commercial law is represented in the Latin phrase, qui facit per alium, facit per se, i.e. the one who acts through another, acts in his or her own interests.
In terms of agreeing an Agency Contract between the parties, tThe Robert Barry & co. v Terence Robert Doyle and another 1998) case illustrates the use of oral communications in commercial contracts which has binding effect to the parties as well. Yet, it is better to exercise a written type so as to avoid further potential technical problems.
According to the Property Misdescriptions Act 1991 s(5)(c), a statement may be made by pictures or any other method of signifying meaning as well as by words and, if made by words, may be made orally or in written form.
An Agent can only bind a principal into a contract with a third party if he has the necessary authority. That is, the agent's authority may be express (either clearly defined, commonly written, and limited to specific areas) or implied (arising out of circumstances, common for the type of business etc.). An agent is not entitled to exceed that authority. However, if he does, the principal may still be held legally responsible for acts entered into by the agent on the principal's behalf in case the act in question was within the apparent or ostensible authority of the agent. The remedy of the principal is limited to personal claim against the agent. There are general agents and special agents.
The formation of
References: Ashton, C. (2007) Understanding Scots law : an introduction to Scots law, procedure and legal skills, Edinburgh: Thomson/W. Green. Busby, N. (2006) Scots law : a student guide, 3rd / Nicole Busby ... et al. ed., Haywards Heath: Tottel. Partnership Act 1890 Property Misdescriptions Act 1991 The Commercial Agents (Council Directive) Regulations 1993 Bibliography Bisacre, J. R. and McFadzean, C. (2011) Company law, Law essentials, Dundee: Dundee University Press. Black, G. (2008) Business law in Scotland, Edinburgh: Thomson/W. Green. Bowstead, W., Reynolds, F. M. B. and Davenport, B. J. (1976) On agency, 14th ed. MacQueen, H. L. and Thomson, J. M. (2007) Contract law in Scotland, 2nd ed., Edinburgh: Tottel.