1. Law of Agency
Salient features

2. Nature of agency
When one person, the agent concludes juristic act for or behalf of another, who is called the principal with the result that a legal tie arises between the principal & a third party.

3. Representative capacity
To conclude juristic acts o behalf of another.
Lack of authority may be cured by ratification.

4. Authority Express agreement between principal and agent.
Formal appointment eg written power of attorney.

5. Authority by operation of law
Guardian and minor
Curator and an insane person
Director and company

6. Estoppel
If the principal has created false impression that another person has the authority to conclude juristic on his behalf, & third party then act to his detriment on the strength of that impression, the principal can be prohibited from denying such authorisation.

7. Ratification
Validation by a person of a juristic act concluded on his behalf by another who did not have the authority to do so.

8. Relationship between Principal and Agent
If agent acts on behalf of someone else intention should be apparent to the other party.

9. Duties of the agent He is obliged to follow his instructions
He must exercise care and diligence
The agent must show good faith

10. The agent must show good faith
Secret profits – all profits acquired by the agent in agency transactions is acquired for the principal.
- Director must account for corporate opportunity.

11. The agent must show good faith
Conflicts of interest: There must be disclosed to the principal

12. The agent must show good faith
Abuse of confidential information: He may not misuse confidential information obtained through fiduciary relationship with his principal.

13. Duties of the agent
d) The agent must account properly

14. Duties of the principal
He must reimburse the agent for expenses incurred in the exercise of a lawful instruction.
He remunerate the agent for his services.

15. Personal Liability of the Agent
1. He can bind himself by way of agreement as against the third party by warranting that he has necessary authority

16. 2. A person who falsely represents that he has authority to conclude juristic acts on behalf of another can be liable in delict if the third person acts on his belief of this misrepresentation.

17. 3. The agent can also tacitly warrant he has acquired authority.

18. Where the representative acts for an undisclosed principal he can also incur liability.