Types of Agents in Contract Law

Agencies created by consent – agreement – are not necessarily contractual. It is not uncommon for one person to act as an agent for another with nothing in return. For example, Abe asks Byron to do some errands for him: buy wood from his account at the local lumber yard. Such a free agencyAn agency where the agent does not receive compensation. does not lead to any result other than that of the more usual contractual agency. The usual hot spots arise from authorized actions of officers that would go beyond the powers granted; conflict of interest when the contractor fails to meet its obligation to the principal; and negligence in the performance of his duties by the agent. The usual conflict with the client is not paying the agent as contractually agreed. Most agencies are contractually established. Thus, the general rules of contract law dealt with in Chapter 4 “Introduction to contract law” in Chapter 12 “Remedies” govern the law of mandates. But agencies can also be created without a contract, by appointment. Three contractual principles are therefore particularly important: the first is the requirement of consideration, the second is the requirement of a written relationship and the third concerns contractual capacity. The death of a client and the impact on the agency are often contested when third parties or agents are completely dependent on the agency. In most U.S.

jurisdictions, two views predominate. According to one view, unless the agency is linked to an interest, it ends with the death of the client, regardless of the fact that the agent and the third party do not know it. According to another view, if the third party dealing with the mandatary acts in good faith and in ignorance of the death of the principal, the revocation of the authorisation in the event of the death of the principal takes effect only from the moment when the representative receives notification of that death. In such a case, the client`s estate may be binding. However, see our article on permanent powers. If a contractor acts in his own name without disclosing the client, this does not exclude the client`s liability. It should be noted that if there is no evidence of a genuine agency relationship, there can be no recourse to the doctrine of undisclosed principals. The customer is also not liable if the contract states that an undisclosed customer is not a party. An agreement del credere may result from an express or implied contract.

He does not have to be appointed in writing, notwithstanding the Fraud Act, which requires written and signed proof of security. One. By agreement: The agency relationship may be established by express or implied agreement between the client and the agent. The agreement need not adopt a prescribed format. This can be done orally or in writing, but if it is a contract incorporated into a lease deed of more than three years, it is necessary that it be done in writing. An employee may be authorized to enter into service contracts or sell goods. He can bind his employer to the terms of the contract in question. Common sense will usually indicate the limits of his authority.

If the employer assigns superior authority to the employee, he may be bound to that greater extent. If a representative concludes a contract for the customer and conceals the fact that he is a representative, the customer may demand all the benefits of the contract from the other party, provided that the customer does not cause damage to the other party. However, a third party shall not be liable to a contracting entity whose identity has not been disclosed if the specific terms of the contract exclude liability vis-à-vis an undisclosed principal or the named principal. There is nothing “illegal” or “unethical” about an anonymous agency. This is often done. as long as the fraud and harm caused to the third party is not caused by the undisclosed organization and the agreement does not prohibit it. A commercial agent is a person who, in the ordinary course of his or her business, is authorized to sell goods, deliver goods for sale, purchase goods or raise funds for the security of goods. Commercial agents enjoy special privileges under the Letter Carriers Act 1889.

They can transfer ownership of the property they own in the course of their business, regardless of the lack of ownership.