ABSTRACT
This chapter examines the substance of the Agency Convention and identifies why it might have failed to gain sufficient acceptance to enter into force. In terms of scope, the Convention is limited to contracts for the international sale of goods. Usages are relevant as between principal or agent, and the third party. Ratification is possible irrespective of whether the third party was aware of the lack of authority. The reason for allowing a third party to resist ratification of authorised acts by the principal is that this retains a degree of balance between principal and third party. One further instance which results in termination of the agent’s authority is where this is the effect of the law applicable to the relationship between the principal and the agent. Where the authority is conferred under a contract, the terms of that contract will set out the extent of the agent’s authority.
