- Agent's rights against principal — Authority of agent — Creation of agency
This chapter reviews the agreement between a principal and his agent that can be either express or implied as the great majority of agency agreements are contractual. It discusses contractual agencies wherein consideration must be present, and the agent must be under an enforceable obligation to do what is promised. It also examines how gratuitous agents may possess rights against their principals, notably the right to be indemnified for losses and expenses incurred in the course of their agency. The chapter describes the right to an indemnity as a normal incident of agency that exists independently of any contract between principal and agent. It cites Lord Pearson’s Garnac Grain, wherein he considered what evidence a court might look at in order to determine whether the parties could be taken to have consented to an agency.
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