Common law of agency
A practice note providing an overview of the common law of agency. The note explores the key features of an agency relationship at common law, how one is created and the different types of authority an agent may possess, such as actual or apparent authority. It outlines the main duties owed by agents to their principals, including core fiduciary obligations, and discusses the principal's corresponding duties regarding remuneration and indemnity. The note further analyses the principal's and agent's respective liabilities to third parties, including the differing rules for disclosed and undisclosed principals and an agent's breach of warranty of authority. It also covers the interaction between the common law and the Commercial Agents (Council Directive) Regulations 1993 (SI 1993/3053) (CARs), and how to terminate an agency relationship.
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