LEARNING UNIT 5 LAW OF AGENCY AGENCY An

LEARNING UNIT 5 LAW OF AGENCY

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

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has been performed Timeframe has ended Relationship between parties ended Agent or principal died Agent’s authority withdrawn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