Agency

Authority

 Whether relationship one of principal and agent or client and professional man: Leceistershire v Michael [1941] 2 KB 205

For distinction between apparent authority and warranty of authority – doctrine of undisclosed principal: Marriott Industries v Mercantile Credits [1991] 55 SASR 228 at 234D

Apparent authority between principal and agent – general principles well summarised by Whelan J in Flexirent Capital v EBS Consulting & Ors [2007] VSC 158 at [203]

Agent contracting on behalf of disclosed but unidentified principal Marsh & McLennan v Stanyers Transport [1994] 2 VR 232

Undisclosed principal – breach of implied condition- Liability of principal:  Boyter v Thomson (1995) 3 All ER 135

Undisclosed principal — Assignment of rights: Westbourne Grammar School v Sanget Pty Ltd [2007] VSCA 39

Whether agents interest in property purchased by principal disclosed – whether principal entitled to an account of profits: Yamabuta v Tay No 1 16 WAR 254

Construction and interpretation — Whether respondent entered loan agreements as principal or agent — Respondent intended to contract as agent for unidentified lender: Lundie and Anor v Rowena Nominees Pty Ltd (Receiver and Manager Appointed) (In Liq) [2006] WASCA 106

Vital distinction between authority to negotiate a deal and authority to enter into a binding contract: Pianta v National Finance and Trustees (1964) 38 ALJR 232 at 234 and cases referred to in Milchas Inv v Larkin (1989) 11 ATPR 40-956 at 50-437

Agent acting in own interest – Whether such an agent can bind principal where third party had notice: Combulk Pty Ltd v. TNT Management Pty Ltd 113 ALR 214.

Vicarious liability – directors acting for company – liability of company for fraud of directors – whether directors acting in scope of authority – attribution of knowledge of directors to company Beach Petroleum v Johnson 115 ALR 411

Officer of company who signed contract had not read onerous terms and conditions – significance common law assigns to the act of signing a contract – consideration of circumstances when company liable on contract even where officer exceeds his authority Toll (FGCT) v Alphapharm [2004] HCA 52

The existence and scope of an agent’s ostensible authority depends upon what representation is made by the principal, either by words or conduct, as to the agent’s authority: Barry Albert Andrews and 4 Ors v Racken Pty Ltd and 7 Ors [2007] NSWSC 1010 at [242]

Breach of warranty of authority: Brockway & Anor v Pando & Anor [2000] WASCA 192

 Measure of damages for breach of warranty of authority: Barry Albert Andrews and 4 Ors v Racken Pty Ltd and 7 Ors [2007] NSWSC 1010 at [281]

Business agents – conflict between entitlement to commission under contract and entitlement under Real Estate and Business Agents Act: Maddison Group v Goldstein 1 WAR 569

Finance brokers – Nature of agency — Broker arranged finance for borrower — Fraud by broker Conlan v Registrar of Titles [2001] WASC 201

Power of Attorney

Application for declaration that power of attorney valid — Application for registration of enduring power of attorney — Whether more than two donees could be appointed Ricetti v Registrar of Titles [2000] WASC 98

Revocation — Capacity to revoke: Angliss v Urquhart [2002] NSWCA 256

 Where respondent entered loan agreements as agent for non-existent principal – Where identity of lender not significant to other contracting party – Whether respondent entered loan agreements as principal or agent: Lundie and Anor v Rowena Nominees Pty Ltd (Receiver and Manager Appointed) (In Liq) [2006] WASCA 106

 Application for declaration as to validity of powers of attorney — Donor executed powers of attorney in applicant’s favour while confined to hospital:Ghosn v Principle Focus Pty Ltd (No 2) [2008] VSC 574

Ratification

Ratification is constituted by clear acts of adoption, approval or acquiescence by a principal who has full knowledge of the relevant fact. If the act alleged to be ratified is fraudulent, full knowledge and adoption must be proved, or the circumstances of the alleged ratification must be such as to warrant the clear inference that the principal was adopting the agent’s acts whatever they were and however culpable they may have been. Acquiescence occurs where the principal, knowing all the relevant facts of the agent’s conduct, and knowing that he or she is regarded by the third party as a principal, takes no steps to disown or remedy the conduct. The burden is on the plaintiff to show on the balance of probabilities that the principal had knowledge of all the relevant facts. Ratification may be express or implied from conduct, and can be constituted by a series of acts, although it must be within reasonable time. Ratification of one act in a series of acts in a transaction may, depending on the circumstances, be ratification of the whole transaction. Acts subsequently ratified by an employer or principal are authorised retrospectively, whether the acts or its consequences are to the principal’s advantage or not. If a principal knowingly accepts benefits which flow from the unauthorised act of the agent the principal is taken to have ratified the agents acts: per Malcolm CJ in Brockway & Anor v Pando & Anor [2000] WASCA 192 variously at [116] – [119]

If a principal knowingly accepts benefits which flow from the unauthorised act of the agent the principal is taken to have ratified the agent’s acts: Australia Blue Metal v Hughes [1962] NSWR 904.

Real Estate Agents

Rights and liabilities of real estate agents (1990) Aust & NZ Convey Rep 573; (1992) ANZ Conv Rep 35 & 195; [1994] ANZ Conv Rep 272

Real Estate and Business Agents Act 1978 (WA) – Code of Conduct – Duty to disclose to vendor that purchaser is relative of agent: Reeh v Woolley 9 SRWA 172

Fresh contract between same parties through different agent – whether sale of property “effected” by first agent: Timms v Carafano 53 SASR 572

Appointment to act – Evidence of appointment to act – Entitlement to commission – Hughes v. Warwick Grimmer Ltd (1993) 3 NZLR 347

Whether compliance with s.60(2) of the Real Estate and Business Agents Act – what amounts to a “business” within the meaning of the Act – what amounts to  a “real estate” transaction within the meaning of the Act Redman v Instant Nominees Pty Ltd  [1987] WAR 277 at 296ff

Claim by purchaser against real estate agent for giving negligent advice on purchase of property  – whether agent held out as expert Lopresti v Tassone 17 SR(WA) 77

Purchase of property by agent – whether in course of agency – whether property or proceeds thereof held on trust for principal- relief to which principal entitled: Yamabuta v Tay (No 1) 16 WAR 254

Real estate representative represented he had authority to act on behalf of employer – breach of warranty of authority – fraudulently misrepresented the purchase of land from a client – purchased land in own name – conduct was misleading and deceptive – exemplary damages awarded: Pando v Brockway 20 SR(WA) 1

Misleading and deceptive conduct — Real estate agent acting for vendor – Whether liable for damages for misleading conduct: Butcher v Lachlan Elder Realty Pty Ltd [2004] HCA 60

Misconduct — Appeal from primary judge’s decision affirming Real Estate and Business Agents Supervisory Board decision — Board found appellant failed to properly supervise employee: Johnson v Sheppard [2005] WASCA 13

Statutory protection of purchasers — Advertisement — Application for declarations regarding advertising infringement — Applicant real estate agent represented likely price range regarding sale of land in advertisement: John Ring Pty Ltd v Commissioner of the Office of Consumer and Business [2009] SASC 35

Real estate agents — Breach of fiduciary duty — Benefit gained by disloyalty — Application for declaratory and pecuniary relief — Respondent real estate agent offered to sell property of applicant vendor: Pedersen v Larcombe [2008] NSWSC 1362