CONTRACT LAW — Agency — Creation of Agency Relationship
Principle Statement
An agency relationship exists only where a person called the agent has the authority to act on behalf of another called the principal.
Ratio Decidendi (Source)
Per Akintan, JSC, in Edem v. Canon Balls Ltd. & Anor (2005) NLC-1291999(SC) at p. 9; Paras B–C.
"An agency relationship exists only where a person called the agent has the authority to act on behalf of another called principal."
Explanation / Scope
Agency requires that the agent has authority to act on behalf of the principal. Without such authority, no agency exists. The principle applies to contract law and agency. The rule distinguishes genuine agency from independent contracting. The principal is bound only if the agent acted with actual or apparent authority. The party alleging agency must prove the authority.
