LEARNING UNIT 5 LAW OF AGENCY

AGENCY An agreement 1 party another party (agent) performs (principal) a task Contract of MandateAgency

CONTRACT OF MANDATE  One party = Mandator  Makes an agreement  Another party = Mandatory = performs a specific task  EG. Seller & Estate Agent = Contract of Mandate

DUTIES OF MANDATOR  Mandatory to be paid for expenses that come from performing the mandate  Mandatory to be paid set fee  If no agreed fee then should be paid reasonable amount

DUTIES OF MANDATARY  Carry out task within timeframe of mandate  No liability if mandate not completed  Perform mandate personally  Not to go beyond mandate terms  Act with care & skill – no negligence or else liable for damages  Act in good faith – act in best interest of mandatory  No profit to be gained  Maintain confidentiality  Account of services provided according to the contract

TERMINATING MANDATE  Death of mandator or mandatary  Sequestration of the estate of either  Revocation by mandator  Renunciation by mandatary

THE AGENT’S DUTIES  To follow instructions  Exercise care & not negligence or will be liable for damages  Good faith – Interests & other intentions must be stated  Confidentiality to be held  Inform the principal the services provided according to the contract

THE PRINCIPAL’S DUTIES  Expenses must be reimbursed to agent  Must pay the agent

ESTOPPEL  Principal misleads third party & acts as though the agent has authority to perform functions  If third party is mislead & acts in this way, the principal will be bound by the contract  This is even though the agent did not have full authority

RATIFICATION  If someone acts on behalf of another without permission, then the principal will not be responsible  If the principal agrees to the contract after then he will be responsible  Can be EXPRESS or TACIT

PERSONAL LIABILITY OF AGENT  No relationship should exist between agent & third party  Agent can be held accountable by third party if agent misrepresented authority  Agent will be personally liable if uses authority that he/she does not have

TERMINATION OF AUTHORITY  Act has been performed  Timeframe has ended  Relationship between parties ended  Agent or principal died  Agent’s authority withdrawn

HOMEWORK  PAGE 79 – SPORT LAW MANUAL  Please answer QUESTIONS 1 – 11  We will discuss answers in next session

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