2 Creation of Agency

Subject(s):

Authority of agent — Creation of agency — Nature of agency — Principal’s liabilities

This chapter describes the creation of the agreements between principal and agent. It shows how the agreement between principal and agent may be either express or implied. Although the great majority of agency agreements will in fact be contractual, even in the commercial setting this is not exclusively the case. Non-contractual duties borne by an agent, such as the fiduciary duty to account to the principal, may continue to bind the agent even after the agency contract has terminated or bind even if the agency is gratuitous ab initio. What is required, in the main, is that the parties should have consented to the agency.