Common Law Agency Agreement

In general, an agent may be appointed to perform any function that the client could legally perform. In Boma Manufacturing Limited v. Canadian Imperial Bank of Commerce, [1996] 3 SCR 727, the Supreme Court of Canada confirmed that the Agency`s general rule is that a client is bound by the actions of an agent when the agent acts within his or her actual authority. The terminology of agency law may seem too technical, but in short: the party that gives another party the power to act on its behalf is referred to as a “principle.” The party entitled to act on behalf of another is the “agent.” As a general rule, a client may also unilaterally revoke his initial agreement on the agency relationship. However, the right of the client to revoke the contract may be prohibited by an express or implied clause of the agency contract or by a law regulating the situation in question. Nor is a client free to terminate the contract as he sees fit if the Agency is “irrevocable” (i.e. where authority is conferred to protect the interests of the representative), unless the representative has committed a fundamental offence or has not performed it satisfactorily. Where the client has the power to revoke the agency contract, the common law stipulates that the contracting authority must assign appropriate notification to the agent. What constitutes reasonable communication depends on the facts of each situation.

An agent may also unilaterally refuse the agency relationship, but as a matter of common law, such a refusal will be inoperative, unless it is accepted by the client. The majority of representatives in the construction and trade world will enter into written contracts described the representative`s commitment. Therefore, a representative`s obligations and obligations to a contracting power depend to a large extent on the contractual terms and extent of the power conferred. There are still a number of tasks to be done in the common law. Primarily, the agent undertakes to act in the best interests of the awarding entity and to exercise its discretionary powers in the legal and practical sense. If the Agency is involuntary, the courts will consider what the nature of the Agency is as a construction issue and will focus on whether or not another person has been empowered to act and may decide whether or not it is reasonable to set up a legal agency; it cannot always be cut clearly and can give surprising results. “This agreement can be executed and delivered by the parties in one or more counterparties, each of which will be original and each of which can be distributed by fax, e-mail or other functionally equivalent electronic transmission, and these counterparties will together form the same instrument.” An agency contract can be terminated automatically if the task is completed, if the contract has been thwarted, in the event of death, insolvency or madness.