Formation of agency
In this lesson, you'll learn how agency relationships are formed under law and why understanding the different methods matters for your Corporate and Business Law exam. Agency can be created through express agreement (written or verbal), or through implied authority based on conduct between parties.
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In this lesson
- 0:00 How agency relationships are formed
- 1:52 Implied agency and conduct between parties
- 2:41 Agency by ratification explained
- 3:17 Agency by necessity in emergencies
- 4:36 Agent by estoppel and apparent authority
- 6:07 Ratification requirements and conditions
- 8:42 Great Northern Railway case study
About this lesson
You'll also explore less common formations: ratification (where a principal approves an agent's unauthorised acts after the fact), agency by necessity (emergency situations requiring reasonable action), and agency by estoppel (where fairness prevents a principal from denying someone acted on their behalf). Through worked examples—from employee purchases to the classic Great Northern Railway case—you'll see how courts apply these principles to determine when someone genuinely has authority to bind another party, and crucially, when a principal must reimburse expenses incurred by their agent.
Duration: 11m
Transcript
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