1. Agency by Express Appointment
An agency by express appointment is created through verbal or written authorization by the principal to the agent. The principal gives express authority to the agent as stated in the first part of Section 140 of the Contracts Act, 1950. According to Section 140, “an authority is said to be express when it is given by words spoken or written.”
2. Agency by Implied Appointment
The second part of Section 140 of the Contracts Act 1950 provides for implied appointment of an agent. The appointment is implied when the authority can only be drawn from the circumstances of the case, which means things that were spoken or written, or act done by the parties in the ordinary course of dealing.
3. Agency by Ratification
Agency by ratification can arise if one of the situations below exists:
(a) when an agent exceeded his authority; or
(b) when a person is not an agent, but acted as if he has the authority to act as an agent.
In the event of the above, Section 149 of the Contracts Act 1950 provides that,
"where acts are done by one person on behalf of another but without his knowledge or authority, he may elect to ratify or to disown the acts."
If the principal accepts the contract, such acceptance is known as ratification. Ratification renders the principal liable to the contract, as if the agent has been authorised to do such act.
Ratification can be done expressly or impliedly as provided in Section 150 of the Contracts Act 1950. For example, A, without authority, buys goods for B. Afterwards B sells them to C on his own account. B conduct implies a ratification of the purchase made for him by A.
4. Agency by Necessity
Agency by necessity arises when there is an emergency situation and it becomes necessary for the agent to act to preserve the principal's property.
Section 142 of the Contracts Act 1950 provides that,
"an agent has authority, in an emergency, to do all such acts for the purpose of protecting his principal from loss as would be done by a person of ordinary prudence, in his own case, under similar circumstances."
For an agency by necessity to exist, the following conditions must be fulfilled.
(a) It is impossible for the agent to get the principal's instructions.
b) The agent acted to prevent the principal from incurring loss or damages.
(c) The agent acted in good faith for the interest of the principal.
An agency by express appointment is created through verbal or written authorization by the principal to the agent. The principal gives express authority to the agent as stated in the first part of Section 140 of the Contracts Act, 1950. According to Section 140, “an authority is said to be express when it is given by words spoken or written.”
2. Agency by Implied Appointment
The second part of Section 140 of the Contracts Act 1950 provides for implied appointment of an agent. The appointment is implied when the authority can only be drawn from the circumstances of the case, which means things that were spoken or written, or act done by the parties in the ordinary course of dealing.
3. Agency by Ratification
Agency by ratification can arise if one of the situations below exists:
(a) when an agent exceeded his authority; or
(b) when a person is not an agent, but acted as if he has the authority to act as an agent.
In the event of the above, Section 149 of the Contracts Act 1950 provides that,
"where acts are done by one person on behalf of another but without his knowledge or authority, he may elect to ratify or to disown the acts."
If the principal accepts the contract, such acceptance is known as ratification. Ratification renders the principal liable to the contract, as if the agent has been authorised to do such act.
Ratification can be done expressly or impliedly as provided in Section 150 of the Contracts Act 1950. For example, A, without authority, buys goods for B. Afterwards B sells them to C on his own account. B conduct implies a ratification of the purchase made for him by A.
4. Agency by Necessity
Agency by necessity arises when there is an emergency situation and it becomes necessary for the agent to act to preserve the principal's property.
Section 142 of the Contracts Act 1950 provides that,
"an agent has authority, in an emergency, to do all such acts for the purpose of protecting his principal from loss as would be done by a person of ordinary prudence, in his own case, under similar circumstances."
For an agency by necessity to exist, the following conditions must be fulfilled.
(a) It is impossible for the agent to get the principal's instructions.
b) The agent acted to prevent the principal from incurring loss or damages.
(c) The agent acted in good faith for the interest of the principal.
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