Reasons Why Agents Are Appointed
Define who is an agent and give TWO (2) reasons why agents are appointed.
GHL Fridman describes agency as ‘the relationship that exists between persons when one, called the agent, is considered in law to represent the other, called the principal, in such a way as to be able to affect the principal’s legal position in resects of strangers to the relationship by the making of contracts or the disposition of property’. The Australian High Court in International Harvester Co of Australia Pty Ltd v Carrigan’s Hazeldene Pastoral Co2 defined agency as ‘a word used in law to connote an authority or capacity in one person to create legal relations between a person occupying the position of principal and third parties’. The law of agency in Malaysia is mainly found in Sections 135 to 191 of the Contract Act 1950. An agency is defined as ‘a person employed to do any act for another or to represent another in dealings with third persons’. The reasons agents appointed are:
1. Save the time
It helps the principal save the time. Most of the principal are busy on their job and did not have the time to sell their house, car, or lands. Therefore, the principal can appoint the agent help him to meet the customer who are interested and represents him in the transaction. It can help the principal save the time and done the transaction while principal is working.
2. Experience and the knowledge.
The principal want to sell his house but it requiring a lot of procedure and cause a lot of problem. Therefore, the principal can appoint the agent to help him. If the agents have they own knowledge and experience, they can use their own experience and the knowledge to guide the principal about the transaction, solving the problem and helping the principal doing the procedure. It helps the principal to save the time settle the problems.
(b) Discuss the various ways in which an agency can be created. (10 marks)
The various ways in an agency can be created are:
1. By
GHL Fridman describes agency as ‘the relationship that exists between persons when one, called the agent, is considered in law to represent the other, called the principal, in such a way as to be able to affect the principal’s legal position in resects of strangers to the relationship by the making of contracts or the disposition of property’. The Australian High Court in International Harvester Co of Australia Pty Ltd v Carrigan’s Hazeldene Pastoral Co2 defined agency as ‘a word used in law to connote an authority or capacity in one person to create legal relations between a person occupying the position of principal and third parties’. The law of agency in Malaysia is mainly found in Sections 135 to 191 of the Contract Act 1950. An agency is defined as ‘a person employed to do any act for another or to represent another in dealings with third persons’. The reasons agents appointed are:
1. Save the time
It helps the principal save the time. Most of the principal are busy on their job and did not have the time to sell their house, car, or lands. Therefore, the principal can appoint the agent help him to meet the customer who are interested and represents him in the transaction. It can help the principal save the time and done the transaction while principal is working.
2. Experience and the knowledge.
The principal want to sell his house but it requiring a lot of procedure and cause a lot of problem. Therefore, the principal can appoint the agent to help him. If the agents have they own knowledge and experience, they can use their own experience and the knowledge to guide the principal about the transaction, solving the problem and helping the principal doing the procedure. It helps the principal to save the time settle the problems.
(b) Discuss the various ways in which an agency can be created. (10 marks)
The various ways in an agency can be created are:
1. By