ABSTRACT
This chapter focuses on the role of the agent, and the interrelationships between the agent and the business. The principles of agency law provide the basis for an understanding of many issues relating to partnerships and some of those relating to registered companies. Agency principles also apply in relation to companies registered under the companies legislation and the directors. An agency is created by ratification when a person who has no authority purports to contract with a third party on behalf of a principal. Ratification is the express acceptance of the contract by the principal. This form of agency arises from the relationship that exists between the principal and the agent and from which it is assumed that the principal has given authority to the other person to act as his or her agent. Agency by necessity occurs under circumstances where, although there is no agreement between the parties, an emergency requires that an agent take particular action.
