Negotiability Agency : A negotiable instrument such as a bill of exchange, a cheque or a promissory note may be negotiated to another person. The holder of the bill of exchange is treated as a holder for value if consideration for the bill has, at any time, been given. Accordingly, the holder can enforce the bill against the person responsible to make payment.

doi:10.4324/9781843141518-310

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ABSTRACT

An agency relationship usually arises where a principal authorises a willing agent to act on his behalf in the making of contracts and the transfer of property. The effect of an agency relationship is that the third party with whom the agent deals may acquire rights and be subject to obligations. While agency is not an exception to the doctrine of privity, it is a useful means of avoiding the harsher effects of that doctrine, where one person is deemed to be the agent of another.