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Agency Part Three – Agent Liability and Termination

Agents should be mindful that they may be personally liable for actions taken including:

  • Where a contract is made naming the agent rather than the principal. 
  • Acting outside the delegated authority – which would be in breach of the warranty that it has the power to make a contract.
  • The actions of the agent are unlawful.

Some agency appointments are ‘irrevocable’ in which case you should seek legal advice.  In all other cases, an agency may be ended by notice of revocation, renunciation, or operation of law (for instance where the agency was time limited or for a specific purpose that has been fulfilled).

Once ended, the agent may need to account for money, goods, and chattels received on behalf of the principal.

At the end of an agency, the principal should ensure that relevant third parties are notified about the termination.  A principal may still be liable to a third party (who acts in good faith) for representation of an agent even after the agency has finished.

Disputes can arise about the liabilities of an agent and termination of agency; for further information please contact David Collins or Kristy Nunn from our dispute resolution and litigation team.

Liability limited by a scheme approved under Professional Standards Legislation

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