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agency law

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › agency law

  • This topic has 3 replies, 2 voices, and was last updated 7 years ago by MikeLittle.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • August 31, 2017 at 9:35 am #404567
    adarsh1997
    Participant
    • Topics: 646
    • Replies: 282
    • ☆☆☆☆

    Could you explain what is meant by “agency are formed without the agent’s consent.”

    August 31, 2017 at 10:11 am #404601
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23309
    • ☆☆☆☆☆

    Interesting quote … where’s it from?

    I can understand “agency is formed without the principal’s consent” but I’m struggling with your quote

    Maybe it’s referring to an agency agreement without any formal arrangements as in the case of an agency created out of necessity

    Do you think that could be the case?

    August 31, 2017 at 12:46 pm #404644
    adarsh1997
    Participant
    • Topics: 646
    • Replies: 282
    • ☆☆☆☆

    It’s a question in the BPP Kit.

    Which two types of agency are formed without the agent’s consent?
    (1) Agency by implied agreement
    (2) Agency by express agreement
    (3) Agency by estoppel
    (4) Agency by ratification

    August 31, 2017 at 1:41 pm #404652
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23309
    • ☆☆☆☆☆

    It’s still a strange question and the word “consent” makes it confusing

    Clearly agency by express agreement requires the agent to expressly agree

    Agency by implied agreement again suggests that the agent knows that the relationship is one of agent / principal and has placed himself into the position where outsiders would view him as an agent. Does that mean that he consents?

    Agency by estoppel is where the principal is estoppel from denying that the person is an agent because he has been allowed in the last to act like an agent. But does that mean that the agent “consents”?

    And by ratification? This is where the “agent” enters into a contract for the benefit is the principal but does so beyong the agent’s authority. The principal comes along later and says “You shouldn’t have done that but, this time, I’m going to accept that you are an agent and I’m going to ratify your unauthorized actions”

    Now, other than “by express agreement” which of those other three are situations where the agent hasn’t given consent?

    What a dreadful question!

    Sorry that I can’t help further!

    OK?

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Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘agency law’ is closed to new replies.

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