An updated version of Agency Law from previous slides which based on the Contract Act 1950 of Malaysia. Please kindly email to me at hidayahtul@tarc.edu.my or comment your email if you would like to have a copy of my slides. Thank you! Copyright © 2020, Nur Hidayahtul Nabihah Binti Manas

2. WHAT IS AGENCY?
• THE RELATIONSHIP WHICH EXISTS BETWEEN THE PRINCIPAL AND THE AGENT WHO IS AUTHORIZED TO
ACT FOR THE PRINCIPAL OR REPRESENT THE PRINCIPAL IN DEALINGS WITH OTHERS.

3. Principal
The person for whom such act
is done, or who is so
represented.
Agent
a person employed to do any act for
another or to represent another in
dealings with thirds persons.
18 years old, sound mind
Any person
Including minor or unsound
mind (not responsible for his
act)

4. CONTRACTS IN AGENCY
• The principal
• The agency
Agency
Contract
• The principal
• The 3rd party
Law of Contract

5. Creation of Agency
Necessity
Section 142 – In
emergencysituation
Great Northern
Railway Co. v Swaffield
Ratification
Section 149 – Agent
exceeded his authority
Principal may ratify
Or may disown the act
Estoppel
Section 190 – Principal
is stopped from
denying the agent’s
authority
Soanes v London and
South Western
Railway Co.
Express Appointment
Section 140 – Written
or Oral
Implied Appointment
Section 140 –
Circumstancesof the
case

6. AUTHORITIES OF AGENT
Actual
• Express by the principal
• Implied by the principal
Apparent or Ostensible
• The law regards the
agent have the
authority

7. DUTIES OF AGENT
Obey the principal’s
instruction
Section 164
Turpin v Bilton
Exercise care and
diligence
Section 165
Keppel v Weller
Render proper account
Section 166
Pay to his principal all
sum received on his
behalf
Section 171
Communicate with
principal
Section 167
Act in the best interest
of principal
Section 164
Not let his personal
interest conflicts with
his duty
Section 168
Not make any secret
profit
Section 168
Mahesan v Gov Officers
Coop Society
Not to disclose
confidential
information
Not to delegate his duty
Section 143

8. DUTIES OF PRINCIPAL
Duty to indemnity
agent for lawful duties
• Section 175
Duty to indemnify agent
for acts done in good
faith
• Section 176
Duty to compensate
agent for injury caused
by principal’s neglect
• Section 178

9. TERMINATION OF AGENCY
Section 154
Act of Parties
Mutual
Consent
Unilateral
Revocation by
principal
Renunciation
by agent
Operation of
Law
Performance
of contract
Expired of
period of
contract
Death
Subsequent
insanity
Bankruptcy Frustration
Section 161: Only effective if the agent and the third party know about the termination