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15.4.1 The most obvious way to create an agency relationship is through explicit consent or authorization. An explicit power is conferred where the procuring entity expressly accepts, by terms, that the agent acts in a manner specific to the contracting entity and that the holder gives his consent. The principal and the agent are considered to agree when they have agreed on the amounts resulting from the law for such a relationship, even if they have not recognised it themselves and even if they have announced their refusal – see Garnac Co Grain Inc v Faure & Fairclough Ltd [1968] 1 AC 1130 at p. 1137. However, consent must have been given by each of them. First, we look at what they said and did at the time of the alleged creation of the Agency. Previous words and behaviors can give indications of the evolution of practices at this stage and can be considered more generally as a historical context. Later words and behaviour may have some meaning, but they are probably less important – see Garnac Grain Co Inc v. Faure &Fairclough Ltd [1968] 1 AC 1130 at p. 1137; Freeman & Lockyer v Buckhurst Park Properties (Mangal) Ltd [1964] 2 QB 480. Koenigsblatt v Sweet (1923) summarizes teaching as “equivalent to the previous authority” for an agent. Although not all acts can be authorized. A principal will usually want to ratify an act of financial profit.

The flexibility of the law with regard to its rules relating to the Agency allows for a derogation from the fundamental legal principle of “legal effect”; In other words, the parties cannot delegate rights or obligations with respect to the treaty to anyone other than themselves. A P&A allows a party such as a broker (but often a supplier of goods or a “seller”) to create legal relationships (e.g.B. a lease agreement) which link a third-party financier to the end customer. An agency by ratification is also called the ex post facto agency, i.e. the agency that will see the light of day after the event. Even if a lessee may enter into a lease on the assumption that the party with whom it holds a contract is the actual lessor, the validity of the lease is not affected by the fact that the latter party was not the true owner of the leased property, provided that the necessary P&A are in place. “Ratification” simply means retroactively consenting to an act. X Ltd has two directors, Joe and Harry. None of the directors is authorized to enter into contracts on behalf of the company. In practice, Joe enters into all contracts on behalf of the company (with Harry`s agreement). .