Agency. Express Actual Authority
Agency
* Sec. 3 of the Civil Law Ordinance states as follows: “In all questions or issues which may hereafter arise or which may have to be decided in Ceylon in respect of the law of partnerships, corporations, banks ad banking, principals and agents, carriers by land, life and fire insurance. The law to be administered shall be the same as would be administered in England, In the like case as the corresponding period, if such question or issue had arisen or had to be decided in England, unless in any case other provision are or shall be made by an any enactment now in force in Ceylon or hereinafter to be enacted.
• Even though English Law would apply generally with regard to the Law of Agency, the matter of the capacity of the parties in a contract of Agency would be governed by Roman Dutch Law (RDL) principles. The rules are as follows- o P must have capacity – to be enforceable o 3rd Party must have capacity o Agent does not generally require capacity. But A’s lack of capacity will affect ▪ The contract of agency between P and A ▪ An action against the agent by the 3rd party for breach of warranty of authority.
ACTUAL AUTHORITY
Actual authority may arise from express agreement or from implied agreements. Where the principal expressly appoints an agent to do some act or enter into some contract on his behalf the Agent has express authority. If the instructions are not clear he should get a clarification but if he cannot contact the Principal he can act on a reasonable construction of the instructions even though it may not be what the principal intended.
Generally no particular form is required for the granting of actual authority. Ie. It is not necessary that the agent must be appointed by some special procedure or in writing. However, there are certain exceptional situations in which it is necessary to appoint an Agent in writing. a) s. 27 of the CPC
* Sec. 3 of the Civil Law Ordinance states as follows: “In all questions or issues which may hereafter arise or which may have to be decided in Ceylon in respect of the law of partnerships, corporations, banks ad banking, principals and agents, carriers by land, life and fire insurance. The law to be administered shall be the same as would be administered in England, In the like case as the corresponding period, if such question or issue had arisen or had to be decided in England, unless in any case other provision are or shall be made by an any enactment now in force in Ceylon or hereinafter to be enacted.
• Even though English Law would apply generally with regard to the Law of Agency, the matter of the capacity of the parties in a contract of Agency would be governed by Roman Dutch Law (RDL) principles. The rules are as follows- o P must have capacity – to be enforceable o 3rd Party must have capacity o Agent does not generally require capacity. But A’s lack of capacity will affect ▪ The contract of agency between P and A ▪ An action against the agent by the 3rd party for breach of warranty of authority.
ACTUAL AUTHORITY
Actual authority may arise from express agreement or from implied agreements. Where the principal expressly appoints an agent to do some act or enter into some contract on his behalf the Agent has express authority. If the instructions are not clear he should get a clarification but if he cannot contact the Principal he can act on a reasonable construction of the instructions even though it may not be what the principal intended.
Generally no particular form is required for the granting of actual authority. Ie. It is not necessary that the agent must be appointed by some special procedure or in writing. However, there are certain exceptional situations in which it is necessary to appoint an Agent in writing. a) s. 27 of the CPC