Law of Agency
Creation and scope of authority, duties between principal and agent, third-party effects, conflicts and termination.
How to study the four current units
Prepare each 30-question unit on its own terms, combine rule recall with short workplace application and keep law and guidance current for England and Wales.
Core concepts
Concept 1
Identify the principal, agent, third party and the source and scope of actual or apparent authority.
Exam cue: Draw the three-party relationship before deciding who is bound or liable.
Concept 2
An agent's duties include acting within authority, applying care and skill, accounting and managing conflicts and secret profits.
Exam cue: Check both internal authority and what the principal represented externally.
Concept 3
The principal may be bound where the agent acts with relevant authority, while unauthorised action raises ratification and liability questions.
Concept 4
Termination of authority must be separated from continuing appearance of authority to third parties.
Risk pitfalls and guardrails
Assuming the job title alone defines the agent's full authority.
Guardrail: Check the current qualification, jurisdiction, document and effective date before relying on a remembered rule.
Treating termination between principal and agent as automatic notice to every third party.
Guardrail: Check the current qualification, jurisdiction, document and effective date before relying on a remembered rule.
Memory anchors
Law of Agency: scope
Creation and scope of authority, duties between principal and agent, third-party effects, conflicts and termination.
Law of Agency: focus 1
Identify the principal, agent, third party and the source and scope of actual or apparent authority.
Law of Agency: focus 2
An agent's duties include acting within authority, applying care and skill, accounting and managing conflicts and secret profits.
Law of Agency: focus 3
The principal may be bound where the agent acts with relevant authority, while unauthorised action raises ratification and liability questions.
Law of Agency: focus 4
Termination of authority must be separated from continuing appearance of authority to third parties.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
Next step personalized recommendations
Continue learning
Move forward only after this module is stable.
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