Agent Authority

Introduction

This essay is concerned with agent authority, whether it is actual or ostensible. I will be discussing in detail both the actual an ostensible authority that an agent may possess or be believed to possess at the time the contract was concluded with the third party.

The principal can find himself in a contract with a third party due to the actions of his agent. This situation will depend on what the agent has done and what authority he possessed at the time. I will examine the liability of the principal to be bound by said contract in regards to the agent’s authority at the time the contract was completed with the third party. Also, the liability of an agent to his principal if he acts beyond his authority.


Definition of Terms

Agency can be described as the relationship between two parties, whereby on person, the principal, authorities another, the agent, to act on his behalf in legal relationships between the principal and third party.

Agency rela...