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12 Legal Relations Between Agent and Third Party

From: Agency: Law and Principles (3rd Edition)

Roderick Munday

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2022. All Rights Reserved.date: 26 June 2022

Creation of agency — Nature of agency — Principal’s liabilities — Legal relations between principal and third party — Legal relations between agent and third party

This chapter explores the legal relations between the agent and the third party. An agent acting for a disclosed principal (named or unnamed) normally can neither sue nor be sued by the third party on contracts concluded on behalf of that principal. In cases of disclosed agency, the object is to bring principal and third party into direct contractual relations. At this point, the agent customarily drops out of the transaction, neither acquiring rights against the third party nor incurring liability to the third party. There are, however, a number of exceptions to the general rule that an agent does not customarily acquire rights or incur liabilities under their principal’s contract, which are elaborated in the chapter.

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