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Part 1 Chapter 2 - The Authority of an Agent

from Part 1 - Agency

Published online by Cambridge University Press:  05 August 2012

Nicholas Ryder
Affiliation:
University of the West of England, Bristol
Margaret Griffiths
Affiliation:
University of Glamorgan
Lachmi Singh
Affiliation:
University of the West of England, Bristol
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Summary

Introduction

The purpose of Part 1 Chapter 2 is to provide a detailed commentary on the different types of authority that relate to an agency agreement, including actual authority.

The authority of an agent

Chapter 1 highlighted the problems associated with defining the terms ‘agent’ and ‘agency’. Somewhat unsurprisingly, the same problem arises with respect to the different categories of authority. Bradgate pointed out that ‘one of the great difficulties of the law of agency is that terminology is not used consistently’. For the purposes of this chapter, we will look at actual authority (both express and implied), apparent authority and usual authority.

Actual authority

The actual authority of an agency is granted by an agreement with the principal, which could be classified either as ‘implied’ or ‘express’ authority. This was a point famously referred to by Lord Denning MR in Hely-Hutchinson v. Brayhead Ltd:

actual authority may be express or implied. It is express when it is given by words, such as when a board of directors pass a resolution which authorises two of their number to sign cheques. It is implied when it is inferred from the conduct of the parties and the circumstances of the case, such as when the board of directors appoint one of their number to be managing director. They thereby impliedly authorise him to do all such things as fall within the usual scope of his office.

Type
Chapter
Information
Commercial Law
Principles and Policy
, pp. 14 - 27
Publisher: Cambridge University Press
Print publication year: 2012

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References

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