BUSINESS LAW AGENCY
USIU
BUS 3010
BUSINESS LAW
LAW AGENCY NOTES
AGENCY LAW
The law of agency in Kenya is basically that of the English Common Law. It deals with the relationships that arise when one person, the agent, is used by another, the principal, to perform certain tasks on his behalf.
CREATION OF THE AGENCY RELATIONSHIP
Agency may be created in four ways namely,
i. By contract ii. By Ratification iii. By Estoppel iv. By operation of the law
Agency by Contract
This may either be by express contract which requires no special formality and may be oral or in writing or it may be implied contract of agency. In the latter case, there is no express contract but only a set of circumstances arid-conduct of the parties which necessitate the implication of an agency relationship.
Agency by Ratification
Under ratification what the agent does on behalf of the principal is done at the same when the agency relationship is non-existent. Later, however the principal on whose behalf though without whose authority, the agent has acted accepts the agents acts and adopts it just as if there had been the principal's prior authorization. Three conditions must be fulfilled to constitute a valid ratification namely;
i. The agent whose act is sought to be ratified must have claimed to act for the principal; ii. At the time of action the agent must have had a competent principal; iii. At the time of ratification the principal must be legally capable of doing the act in question himself.
Agency by Estoppel
Estoppel when applied to agency means that a person who by words or conduct has allowed another to appear to the outside world to be his agent with the result that third parties deal with him as his agent cannot afterwards refuse to accept or acknowledge this apparent agency if to do so would cause injury to third parties. There are basically three legal requirements for the application of estoppel. First, there must be a representation either through a. statement or conduct on the
BUS 3010
BUSINESS LAW
LAW AGENCY NOTES
AGENCY LAW
The law of agency in Kenya is basically that of the English Common Law. It deals with the relationships that arise when one person, the agent, is used by another, the principal, to perform certain tasks on his behalf.
CREATION OF THE AGENCY RELATIONSHIP
Agency may be created in four ways namely,
i. By contract ii. By Ratification iii. By Estoppel iv. By operation of the law
Agency by Contract
This may either be by express contract which requires no special formality and may be oral or in writing or it may be implied contract of agency. In the latter case, there is no express contract but only a set of circumstances arid-conduct of the parties which necessitate the implication of an agency relationship.
Agency by Ratification
Under ratification what the agent does on behalf of the principal is done at the same when the agency relationship is non-existent. Later, however the principal on whose behalf though without whose authority, the agent has acted accepts the agents acts and adopts it just as if there had been the principal's prior authorization. Three conditions must be fulfilled to constitute a valid ratification namely;
i. The agent whose act is sought to be ratified must have claimed to act for the principal; ii. At the time of action the agent must have had a competent principal; iii. At the time of ratification the principal must be legally capable of doing the act in question himself.
Agency by Estoppel
Estoppel when applied to agency means that a person who by words or conduct has allowed another to appear to the outside world to be his agent with the result that third parties deal with him as his agent cannot afterwards refuse to accept or acknowledge this apparent agency if to do so would cause injury to third parties. There are basically three legal requirements for the application of estoppel. First, there must be a representation either through a. statement or conduct on the