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Assignment 4 bsl-1

An agency arrangement is an agreement where one party (the principal) authorizes another party (the agent) to act on their behalf. An agency can be created orally or in writing. Essentials of an agency contract include an agreement between principal and agent, consideration is not necessary, and an intention of the agent to act on behalf of the principal. An agency can be created expressly through words or writing, impliedly through the conduct or relationship of the parties, through apparent authority, or by operation of law.

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76 views

Assignment 4 bsl-1

An agency arrangement is an agreement where one party (the principal) authorizes another party (the agent) to act on their behalf. An agency can be created orally or in writing. Essentials of an agency contract include an agreement between principal and agent, consideration is not necessary, and an intention of the agent to act on behalf of the principal. An agency can be created expressly through words or writing, impliedly through the conduct or relationship of the parties, through apparent authority, or by operation of law.

Uploaded by

Danish Sarwar
Copyright
© © All Rights Reserved
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Download as DOCX, PDF, TXT or read online on Scribd
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Assignment – 4

Hunium Anjum
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Please explain contract of agency and its essentials, the


various ways under which an agency may be created?

An agency arrangement is a legitimate agreement making a guardian relationship whereby


the primary party concurs that the activities of a subsequent gathering ties the chief to later
arrangements made by the specialist as though the chief had himself by and by settled on
the later arrangements.
An agreement of agency can be made orally or recorded as a hard copy. Illustration of a
composed agreement of office is the Intensity of Lawyer that gives a privilege to an office to
follow up for his head as per the terms and conditions.
An example of the existence of an agency agreement at issue in a 2006 court case arose
when a tennis tournament sponsor sued Venus and Serena Williams for not participating.
The sponsor argued that their father, Richard Williams, had committed to their
participation in the tournament. The Williams sisters argued that their father did not have
the authority to bind them to such an agreement. If their father did commit the sisters to
play, the issue for the court to decide is whether a valid agency agreement existed between
the Williams sisters and their father. If not, then they likely were not bound to his
agreement under the law of agency
These are the essentials of Contract of Agency which are given below:
 Agreement:
There shall be an agreement between the principal and agent.
 Consideration not necessary:
The contract shall be with or without consideration.
 Intention to Act on behalf of the principal:
There shall be an intention of the agent to act on behalf of the principal. When the
agent enters into a contract for himself, then the principal will not be liable.
 Creation of Agency:
The Contract of Agency could be created in any of the subsequent ways;
 Express Agency:
The agency or agency agreement could also be created by words of mouth or by an
agreement in writing.
 Implied agency:
An implied agency or agency agreement arises from conduct, situation or relationship
of parties.

The relationship between principal and agent may be created in four ways: through
express or implied agreement between principal and agent; under the doctrine of
apparent authority; by operation of law; and through ratification of an unauthorized
agent's acts by the principal

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