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Agency of Necessity

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The person for whom such act is done, or who is so represented, is called the “principal”. In an agency one person (principal) employs another person (agent) to represent him r to act on his behalf, in dealings with a third person. The act of the agent binds the principal in the same manner in which he would be bound if he does that act himself. An agency may be created in any of the following ways: 1 . Agency by express authority 2.

Agency by implied authority ; Agency by estoppels; ; Agency by holding out; ; Agency by cohabitation; ; Agency by necessity; 3.

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Agency by statute 4. Agency by ratification. Implied agency arises from the conduct, situation or relationship of parties. It may be inferred from the circumstances of the case; and things spoken or written, or the ordinary course of dealing, may be accounted circumstances of the case. According to Halibuts, “Agency of necessity arises whenever a duty is imposed upon a person to act on behalf of another apart from contract, and in circumstances of emergency, in order to prevent irreparable injury.

It may also arise where a person carries out the legal or moral duties of another in the absence of default of that other, or acts in his interest to preserve his property from destruction. ” 6 | Page In certain situations, the law allows the agent to act for the principal without the knowledge and consent of the principal. These are known as agencies of necessity. An agency of necessity is another way in which an agency can arise by operation of law. Its origins can be found in mercantile law, and in shipping law in particular.

It may arise where a person is faced with an emergency in which the property or interests of another person are in imminent Jeopardy and, in order to preserve that property or those interests, it becomes necessary to act for that person without his authority. An agency of necessity probably only applies where there is already some existing contractual relationship between the parties, as the law is highly unlikely to low a person to be bound by the act of a complete stranger.

An agent who seeks to bind a principal on the grounds of an agency of necessity will need to show that ; The agent had no practical way of contacting the principal in order to obtain the principals instructions ; His actions arose from some pressing need for action (usually an emergency of some kind, involving perishable goods or starving animals, for example) ; He acted in good faith in the interests of the principal rather than in his own interests, and ; His action was reasonable and prudent in the circumstances. An illustrative case is Cash v Mimics 1948: The facts: D agreed to store Co’s furniture.

After a considerable time had elapsed D needed the storage space for his own use. Unable to trace C, he sold the furniture and C sued him for conversion. D pleaded agency of necessity in making the sale. Decision: There was no agency of necessity since no emergency had arisen and D had sold the furniture for his own convenience. If Ad’s house had been destroyed by fire and the furniture left in the open, then he would then be Justified in selling it. It is fair to say that modern day telecommunications may prevent an agent of stickiest from arising very often. 1 page STATEMENT OF PROBLEM Agency of necessity arises whenever a duty is imposed upon a person to act on behalf of another apart from contract, and in circumstances of emergency, in order to prevent irreparable injury. With the changing times and technological developments in the telecommunication sector have reduced the chances of the occurrence of such a situation, but the problem which arises is that how far are these sources reliable. The project also takes in consideration the problem of misusing these technological advances by the agents for their personal gains.

REVIEW OF LITERATURE Redbrick Monday states in his book Agency: Laws and Principles that there exist a number of situation in which the law will impose the incidents of agency where one party has acted on behalf of another in the course of an emergency. This occurs when one party (agent) is confronted with an emergency that poses such an imminent threat to the property or other interests of another person (principal) that there is insufficient time for the former to seek the latter’s authority or instructions before acting.

The ‘agent’ elects to act for the benefit of the ‘principal’, without prior authority, in order to preserve or protect that property or those interests. The authority deriving from this form agency differs from those considered thus far. First, the ‘principal’ will not have assented to the creation of an agency- although it may be arguable in some situations that the principal would impliedly have assented to the agent’s intervention. Thus, if a party saves a vessel in distress, in some sense the salvos might be said to have the owner’s consent to do so.

Secondly, in these cases the ‘principal’ will not have represented to third parties that his ‘agent’ possesses authority to act. For these reasons, on the whole, it may be best to view these cases as instances where an agency springs up because, for a range of policy reasons, the law imposes this relationship upon parties. That category of cases that traditionally falls within the designation ‘agency of necessity poses a further problem. By no means are all of them true cases of agency. In some instances, an emergency will confer on an existing agent more extensive authority to bind his principal to transactions.

In a smaller, and more striking, group of cases the emergency will serve to crease 81 Page n agency relationship where none existed previously. But in other cases-possibly, the majority no agency relationship strict sense will arise. The intervening ‘agent’ will not bring the ‘principal’ into direct legal relations with a third party; the issue will simply be whether the ‘agent’ who has intervened on another’s behalf in order to safeguard the latter’s property or other interests in entitled to reimbursements of his expenses.

Cite this Agency of Necessity

Agency of Necessity. (2018, Feb 08). Retrieved from https://graduateway.com/agency-of-necessity/

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