Agency

‘Retrospective’ literally means ‘looking backwards’ and in the context of agency it relates to a situation where a person that does not have authority as an agent enters into a contract and then tells the person on whose behalf he has entered that contract what he has done

That person may be very annoyed and deny liability leaving the supposed agent to face personal liability

However, he may alternatively say ‘Well! You shouldn’t have done that because you had no authority! However, it’s such a good deal that I shall take on that contract and shall retrospectively confirm that you were authorised to enter into that contract as my agent’

‘Ostensible’ and ‘apparent’ authority are very very similar – so much so that I shall answer them as though they are true synonyms

Where, as a result of their position, it appears that a person in that position would usually have authority to enter into contracts on behalf of others, then it may be assumed that such authority actually does exist in practice.

One would normally expect a manager of a bar to have the authority to run the bar on behalf of the owners. That management function would typically include the buying and selling of all matters that are normally bought and sold when running the business of a bar

If the owner wishes specifically to exclude any particular element (like buying tobacco products) then that exclusion must be brought clearly to the attention of others

‘Estoppel’ relates to a situation where a person without authority acts as an agent on behalf of a principal, and ‘the principal’ knows that this is happening but does nothing to prevent it, then on the occasion when the principal decides that they don’t wish to take on a contract they try to communicate with the third party and say ‘This person has no authority as my agent. I’ve never appointed him. So I’m not going ahead with this contract’

But the principal HAS in the past accepted liability on those contracts so is now estopped from denying the authority of the agent

OK?