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9 Pages Topic Notes Year: Pre-2021

Definition and Creation of Agency Agency is the relationship between two persons where one (the agent) has the right to bind the other (the principal) in a legal relationship with a third party; International Harvester Co of Australia Pty Ltd v Carrigan's Hazeldene Pastoral Co (1958) 100 CLR 644 at 652. An employee is in a contractual relationship with his or her employer but the employee is not able to bind the employer in contracts with third parties unless the employee is given that power; Petersen v Moloney (1951) 84 CLR 91 at 94. The relationship between a client and a professional person can be one of principal and agent depending upon the authority conferred by the client on the professional. But normally such relationship will not per se give rise to an agency so that that documents brought into existence by the professional do not belong to the client; Leicestershire CC v Michael Faraday & Partners [1941] 2 KB 205. A person who appears to be acting as an agent must be distinguished from one who is in reality acting for themselves. Thus a co-owner of property who collects rents is not collecting as an agent for the other co-owner but


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