BLAW10001 Lecture Notes - Lecture 11: Secret Profit, Ateliers De Constructions Electriques De Charleroi
15 May 2018
School
Department
Course
Professor
Principles of Business Law
• Lecture 1
• Week 11
• Property Law and Agency Law
• Agency: the concept of representation
• A person (A) can authorise another person (B) to act in their place
o agency underpins many of the practices that are employed in modern
business
• law of agency allows the agent to represent the principle
o authorised acts carried out by representative (B) on behalf of the principal
(A) have the same effects as if done by A directly
o this means that rightd and obligations arising from a transaction undertaken
by the agent will accrue directly to the principal (A), not the agent (B)
• Agency relationships
• A situation of agency typically involves three persons
o The person who is being represented, called the Principal
o The person who acts as the representative, called the agent
o The person with whom the agent deals on behalf of the principal, called the
third party
• Commercial situations
o Relationship between principal and the agent is normally contractual
o Principal employs the agent to provide services, for which the agent is to be
paid
o Agent acquires authority to represent the principal
o Agent may also be authorised to receive performance of obligations on
behalf of the principal, e.g- the payment of money owed to the principal
• A agets authority
• A agets authoit a aise i diffeet as ut, oe eated, it has the sae
effect:
o Express authority
o Implied authority
o Apparent (ostensible) authority
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