Roger Wade, Director, WadeLegal

An agency may come into existence through the more usual way of agreement between the parties, however, it can also arise in other ways including by:

• express or implied agreement of the parties as long as the elements of a contract at law are established, for example, offer, acceptance and consideration, or there is sufficient evidence to show that actions and conduct of the parties impliedly establishes an agency agreement;

• operation of law, for example, because of circumstances of necessity the agent has been conferred authority, beyond that given by any contract between the parties, to do an act in relation to the principal’s property. Statute can also create an agency, for example, every partner in a partnership is an agent of the firm; or

• ratification where the principal adopts the act of its agent and becomes bound by the contract with the third party.