An agent is a person who is employed for the purpose of bringing his principal into contractual relations with third parties .
The agent does not make contract on his own behalf and consequently it is not necessary that he should have full contractual capacity.
A minor or a bankrupt may be an agent.
The principal, however, must have full contractual capacity: if he does not have it , he cannot make a contract by employing an agent who does.
Agency may be created by
a) Express agreement
b) Implication, conduct or necessity.
An agent may be expressly appointed either verbally or in writing.
The appointment may be made verbally even though the contract which the agent is authorized to make has to be in writing.
No particular form is requires unless the agent is to make a contract under seal, in which case he must be given authority under seal, called a power of attorney.
An agency by conduct or implications occurs where a person by words or conduct holds out another as having authority to make contracts on his behalf, he will be bound by such contracts as if he had expressly authorized them.
Lastly, agency by necessity occurs when a person is entrusted with another’s property and it becomes necessary to do something to preserve the property.
However, before any agency can be treated as created by necessity three preconditions must be satisfied, namely;
a) It must be impossible to get the principal’s instructions.
b) There must be an actual and definite commercial necessity for the creation of the agency.
c) The agent of necessity must act bona fide in the the interest of all the parties concerned – Schmitthoff