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- Words:
- 3288
- Submitted:
- Mon Jun 19 2006
... Business Law To: William Capstick From: Svetlana Zmitrovich Agency "Agency is the relationship between two legal persons, natural or artificial, whereby one person (the principal) appoints another (the agent) to act on his behalf in affecting a transaction." (Richard Card, Jennifer James; Law for Accountancy Students; 6th edition; 1997, p477) a)i) The agency may arise in one of the following ways: By agreement It is possible for the agency to arise by two ways of agreement, express or implied. There very often will be a contract but it is not necessary in order for the agency to arise. (Chaudhry v Prabhakar (1988) 3 All ER 718, (1989) 1 WLR 29, CA) All that is necessary is a desire to appoint A as agent and A's consent to act as such. "If the parties have not expressly agreed to become principal and agent, it may be possible to find an implied agreement based on their conduct or
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