1.1.2 Creation of Agency

For a valid Agency contract, the Agent...

• must be the age of majority and sound of mind.

• must be competent.

• must be older than the principal.

• There is no requirement for validity

What is the risk of having a agent which is not sound of mind or in the age of majority

• The contract is void.

• The contract is valid, so he is responsible of his acts.

• The contract is valid but the agent is not responsible toward the principal.

• The agent does not get any commission .

For a valid Agency contract, the principal

• must be in the age of majority and sound of mind.

• can be a minor.

• can be someone unsound of mind but will not be entitled to sue the agent.

• must be a business man.

X is an agent of Y but is not getting anything in exchange, he has no interest into this contract.

• His contract is void for lack of consideration.

• His contract is valid.

An agency contract is formed

• By an oral agreement

• By behaviour

• By a state of necessity

• By written agreement only

An express agency contract is

• Expressly written

• Written or Oral

• Written, oral or by state of necessity

• By behaviour

Which of these situations is an implied Agency contract

• By conduct of the parties

• By the particularity of the situation

• Due to the relation between the parties

• By an email requesting/offering to enter into an agency contract

If, while exceeding its authority, the 'Head of Sales' of a company signs a contract with you in the company's name.

• I can't sue the company because he did not have authority from it.

• I can sue the company by application of implied agency.

• The contract is void, I should have checked that he had authority.

• I can use the Estoppel doctrine

What are the conditions for Agency of necessity?

• Inability to communicate with principal

• Already having an established relationship

• Bina fide in the interest of the party concerned

• Act should be reasonably necessary