Agency of Necessity
QUESTION:
Explain what agency of necessity is and how it may arise.
AUTHOR: KATALILO JOY
INTRODUCTION
This paper will explain what agency of necessity is and how this agency arises.
Agency is the work done by an agent. An agent is a person that has a contractual obligation with a principal to bind the principal to a third party without the agent being party to the contract. The contract then becomes one between the principal and the third party.
In lay terms, imagine parties A, B and C. Party A gets into a contract with party B whereby B has been given powers by A to find C and get C to enter into a contract with A without B owing any obligations to A and C in the resulting contract.
An agency can be created by anyone and without any formalities. Whatever the agency arising, an agency can be created by parties expressly deciding to enter into a contract or by law. In the latter kind, the parties need not even talk or agree on the contract but circumstances arising can make them be contractually bound under the law. In the former kind, a contract with terms is drafted and signatures appended or it can be verbal but two or more parties meet and discuss the contractual terms of the agency.
Among the circumstances that create agency under the law is one that of necessity. The law assumes that a person can act on behalf of another in an emergency with the sole purpose of commercially protecting the interests of another. In such situations, the law awards the person found at the scene of emergence the authority to enter into a contract on behalf of another, even without the knowledge of the other. This is what is called the agency of necessity.
An example of a scene of emergence can be whereby a transporter engaged to transport tomatoes from Mkushi farming block to Kasumbelesa experiences a major break down in Ndola town. The emergence shall be that the tomatoes will get rotten if they stay on the truck waiting for repairs. The transporter can be
Explain what agency of necessity is and how it may arise.
AUTHOR: KATALILO JOY
INTRODUCTION
This paper will explain what agency of necessity is and how this agency arises.
Agency is the work done by an agent. An agent is a person that has a contractual obligation with a principal to bind the principal to a third party without the agent being party to the contract. The contract then becomes one between the principal and the third party.
In lay terms, imagine parties A, B and C. Party A gets into a contract with party B whereby B has been given powers by A to find C and get C to enter into a contract with A without B owing any obligations to A and C in the resulting contract.
An agency can be created by anyone and without any formalities. Whatever the agency arising, an agency can be created by parties expressly deciding to enter into a contract or by law. In the latter kind, the parties need not even talk or agree on the contract but circumstances arising can make them be contractually bound under the law. In the former kind, a contract with terms is drafted and signatures appended or it can be verbal but two or more parties meet and discuss the contractual terms of the agency.
Among the circumstances that create agency under the law is one that of necessity. The law assumes that a person can act on behalf of another in an emergency with the sole purpose of commercially protecting the interests of another. In such situations, the law awards the person found at the scene of emergence the authority to enter into a contract on behalf of another, even without the knowledge of the other. This is what is called the agency of necessity.
An example of a scene of emergence can be whereby a transporter engaged to transport tomatoes from Mkushi farming block to Kasumbelesa experiences a major break down in Ndola town. The emergence shall be that the tomatoes will get rotten if they stay on the truck waiting for repairs. The transporter can be