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Agency 2

Shalaka Chawla (-) (60 Points)

09 August 2011

in agency by estoppel....is the agency created valid for tht single transaction only???

whats the difference b/w implied mode of agency and implied ratification?

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3 Replies

AMIT MISHRA (Legal Professional) (393 Points)
Replied 09 August 2011

Dear Shalaka,

Answers to your query as per my knowledge are:-

1.Please refer to the following

"any agent acting outside the scope of his employment will bind the principal by his acts if such acts were perceived as others to be within the apparent authority of the agent in all those cases where the principle has induced the third party to believe that the acts were within the scope of his authority."

Thus the agent's act though not limited to a particular single transaction/act but is restricted only upto the acts for which the principle is estopped from denying the agency.

2. Difference between implied agency & implied ratification-

Implied agency- An implied agency is frequently established by the conduct and communication of the parties and the circumstances of the particular case[i]. Generally, one should look from the viewpoint of the principal and the agent to determine whether the agent has implied authority[ii].

[i] Keytrade United States v. M/V Ain Temouchent, 2003 U.S. Dist. LEXIS 597 (E.D. La. Jan. 10, 2003)

[ii] Orleans Parish Sch. Bd. v. Goodyear Tire & Rubber Co., 1995 U.S. Dist. LEXIS 8638 (E.D. La. June 19, 1995)

Implied ratification- occurs when the principal, by his or her silence or failure to repudiate the agent’s act, acquiesces in it.

Thus when an implied agency is ratified by the Principal it becomes agency by implied ratification.

Hope my answer helps you.

Thanks &Regards

Amit Mishra

BSamrish & Co.

New Delhi

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Shalaka Chawla (-) (60 Points)
Replied 15 August 2011

But wont an implied agency be recognised by law before principal's ratification?

i mean to say does principal's ratification has any worth ? i doubt it...:O

because even if principal later on refuses to accept the agent's act law will presume that due to principal's positive affirmative agency was already created.

AMIT MISHRA (Legal Professional) (393 Points)
Replied 17 August 2011

Dear Shalaka,

As discussed above. In case of implied agency the principal makes representations by act or conduct that binds him to the contract of agency which is not limited to a particular act. While in case of agency by ratification the Act of the agent is ratified later on by the Principal and the agency is restricted to that particular act only. The two are entirely different whereby in case of agency by ratification the person's act cannot be considered as under the capacity of agent unless ratified. The same is not in case of implied agency. Thus agency by ratification has a retrospective effect of ratification by the principal. Hope the same helps you.

Amit Mishra

BSamrish & Co

New Delhi