Q.
The appointment of agent can be in more than expressed appointment, i.e. written or verbal. However, appointment of agent indirectly by ratification and estoppel is rather confusing. Can you differentiate them?
A.
There are 4 general modes of appointment of agents. They are by express, implied, ratification, necessity appointment.
S.139 Agent's authority may be expressed or implied.
S.142 Agent's authority in an emergency.
S.149 Right of person as to acts done for him without his authority. Effect of ratification.
S.150 Ratification may be expressed or implied.
The most common is by express appointment - written or verbal. Next is by implied appointment, which is by certain conduct that the agent is so given the duty. For example, 'you can take the job if you're keen, here is my number' and when the agent calls back, he is appointed by implied appointment.
Appointment by necessity is usually during emergency. It is for the protection of special conditions and by good faith - perishable goods under the care of transporter. Due to inaccessibility, the agent could not contact the principal and yet stranded in isolation. He acted in good faith, sold it for salvaging total loss. The part on selling, he did it out of necessity. Thus, the appointment to sell is by necessity.
Ratification is a process that rectifies the earlier condition that it had never been appointment yet now, as things fall into places, the appointment is accepted with certain conditions rectified.
Another appointment method is in fact not appointment, rather it is avoidance to the contract called appointment by Estoppel. The agent is implied in the first place like above - taken the job by calling back the principal, but the principal tries to avoid the contract.
This situation renders the third party to incur losses, hence the contract can be restored by using the law of estoppel, meaning the principal is 'estopped' from the duty to fulfil the promise.
Thus, in the strict sense, there are 5 methods of appointment of agent - Express, Implied, Ratification, Necessity and Estoppel.
Read the Link from Estate Agents Authority on formation of agency at
https://www.eaa.org.hk/en-us/Information-Centre/Publications/Agency-Law/-3-Formation-of-agency
Ref:
Estate Agents Authority Hong Kong