Tuesday, August 3, 2021

The Internal Contract or Contract of Mandate

Formation and Requirements 

Pursuant to Art. 2179 of the Ethiopian civil code, we find two sources of representation:  the agreement of the parties or by law. In most cases, the authority to represent a person on a transaction with a third person emanates from the agreement of the parties and seldom, when the social and economic realities so demand, such authority is conferred on a person by operation of the law. When the authority to act on behalf of another emanates from the agreement of the parties, the outcome will be that there will be two separate contracts. These are the internal contract between the principal and the agent and main contract concluded by the agent in the name of the principal with a third party.

Authority by Virtue of Contractual Agency

The common Law Approach

 

The foundation (theoretical) of the modern concept of agency in the common law is the doctrine of identity of principal and agent, in which this theory is generally expressed in the phrase „‟qui facit per altrum facit per se’’ [meaning, he who acts through another acts himself]. While adopting this theory, however, no distinction was made between the internal relation of principal and agent on the one hand, and the external relation between principal and agent towards third a party on the other hand. The reason what the common law theory failed to make distinctions between these relations of the principal – agent and a third party was due to the maxim provided above, which involves the contract of only two persons. 

Sunday, August 1, 2021

Agency Authority Derived from the Law

In most cases, the source of agency is authority of an agent derived from the agreement of the parties, that is, a bilateral agreement between a principal and an agent. Apart from this usual source, agency relationship could emanate from the operation of the law, that is, agency authority is derived from the law itself. Consequently, the consent of the principal has no role in creating the agency relationship and hence it is beyond the principal's consent that agent – principal relationship comes into existence.

Agency Authority by Judicial Act

A different kind of source of agency is authority granted by the court. That is, an authority to act on behalf of another may emanate form the court‟s decision. Courts, upon evolvements of some conditions, may appoint some other person to do activities pertaining to the other. The provisions governing court authorization are provided here in after: 

 

Saturday, July 31, 2021

Form of Agency Contract

As a general rule, for the formation of an agency contract no special form is required unless the law provides that the contract of agency be made in a specified form (article 1719(2) and 2180 of the civil code), or the parties stipulate  that their contract be made in a special form (article 1719(3) of the civil code). 

 

Sources of Agency Authority

Source: Law of Agency Teaching Material

Introduction 

Obviously, an agent is a person who has the authority to act in the name and on behalf of another person called the principal. In other words, it is an authority given to the agent to perform juridical acts as a medium of an intermediary with another person called the third party. By juridical act, we mean acts having effects before the law. These acts performed within the scope of the authority granted, will bind the principal directly. That means the rights and obligations of the contract are that of the principal and the third party. The agent there is only to facilitate the formation of the contract and hence cannot be held liable for the non-performance by both the principal and the third party.

Friday, July 30, 2021

Theories and Development of the Law of Agency under the Civil Law Legal System

 Source: Law of Agency Teaching Material

In comparison to the common law concept of agency, the institution of the modern concept of contractual agency emerged and developed slowly in the civil law legal system. While „‟the Roman law of contract was, of course, found in its high scientific level, it never developed a complete theory of agency.

The Internal Contract or Contract of Mandate

Formation and Requirements  Pursuant to Art. 2179 of the Ethiopian civil code, we find two sources of representation:  the agreement of the ...

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