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the agency before the time expired, except for sufficient cause. If he does, he is liable to compensate the agent for the loss caused to him thereby. The same rules apply where the agent, renounces an agency for a fixed period. Notice in this connection that want of skill, continuous disobedience of lawful orders, and rude or insulting behavior has been held to be sufficient cause for dismissal of an agent. Further, reasonable notice has to be given by one party to the other; otherwise, damage resulting from want of such notice, will have to be paid (s. 206). Under s. 207, the revocation or renunciation of an agency may be made expressly or implicitly by conduct. The termination does not take effect as regards the agent, till it becomes known to him and as regards third party, till the termination is known to them (s. 208).
640:"Firstly, expressing honesty and openness, commercial agents and principals must mutually co-operate in the performance of their agreement. Conduct in good faith requires that each party proactively take action to assist the other in the realisation of their bargain, as opposed to mere abstention from obstructive behaviour. However, whether a party has acted in good faith must not be determined by reference to a moral or metaphysical notion of co-operation; this assessment must be based on an objective appraisal of the actual commercial agency relationship. Accordingly, the intensity of the required co-operation will vary, depending on the terms of the contract and the pertinent commercial practices.
286:, Lord Coleridge CJ on the Queen's Bench concurred with an opinion by Wills J that a third party could hold personally liable a principal who he did not know about when he sold cigars to an agent that was acting outside of its authority. Wills J held that "the principal is liable for all the acts of the agent which are within the authority usually confided to an agent of that character, notwithstanding limitations, as between the principal and the agent, put upon that authority." This decision is heavily criticised and doubted, though not entirely overruled in the UK. It is sometimes referred to as "usual authority" (though not in the sense used by Lord Denning MR in
235:
firm, their liability being joint and several, and in a corporation, all executives and senior employees with decision-making authority by virtue of their position have authority to bind the corporation. Other forms of implied actual authority include customary authority. This is where customs of a trade imply the agent to have certain powers. In wool buying industries it is customary for traders to purchase in their own names. Also incidental authority, where an agent is supposed to have any authority to complete other tasks which are necessary and incidental to completing the express actual authority. This must be no more than necessary
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aspects of the relationship; material facts will include the contractual and commercial leverage of each party, their objective intentions as enshrined in the contract, and the business practices of the sector in question. Nevertheless, the starting axiom of this investigation must be that these are commercial relationships in which professionals are expected to be self-reliant and must be free to pursue their self-interest. Critically, this will not be an estimation aimed at achieving ontological fairness, a just bargain or equilibrium between the giving and receiving of commercial agents and principals".
451:
has been revoked or limited, the partner will have apparent authority unless the third party knows that the authority has been compromised. Hence, if the partnership wishes to limit any partner's authority, it must give express notice of the limitation to the world. However, there would be little substantive difference if
English law was amended: partners will bind the partnership rather than their fellow partners individually. For these purposes, the knowledge of the partner acting will be
254:
For example, where one person appoints a person to a position which carries with it agency-like powers, those who know of the appointment are entitled to assume that there is apparent authority to do the things ordinarily entrusted to one occupying such a position. If a principal creates the impression that an agent is authorized but there is no actual authority, third parties are protected so long as they have acted reasonably. This is sometimes termed "agency by
121:) to create legal relations with a third party. It may be referred to as the equal relationship between a principal and an agent whereby the principal, expressly or implicitly, authorizes the agent to work under their control and on their behalf. The agent is, thus, required to negotiate on behalf of the principal or bring them and third parties into contractual relationship. This branch of law separates and regulates the relationships between:
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constituent to a commission agent for sale, with poor to recoup himself from the sale proceeds, the advances made by him to the principal against the security of the goods; in such a case, the principal cannot revoke the agent's authority till the goods are actually sold and debts satisfied, nor is the agency terminated by death or insanity (illustrations to s. 201);
637:
statutory definition of this obligation to act “dutifully and in good faith”, it has been suggested that it requires principals and agents to act "with honesty, openness and regard for the interests of the other party to the transaction". Two "normative precepts" assist in concretising this standard of conduct:
465:
if the partnership benefited by receiving fee income for the work negligently performed, even if only as an aspect of the standard provisions of vicarious liability. Whether the injured party wishes to sue the partnership or the individual partners is usually a matter for the plaintiff since, in most
410:
The principal also cannot revoke the agent's authority after it has been partly exercised, so as to bind the principal (s. 204), though he can always do so, before such authority has been so exercised (s. 203). Further, under s. 205, if the agency is for a fixed period, the principal cannot terminate
309:
Even if the agent does act without authority, the principal may ratify the transaction and accept liability on the transactions as negotiated. This may be express or implied from the principal's behavior, e.g. if the agent has purported to act in a number of situations and the principal has knowingly
838:
Restatement of Agency (Second)§ 27: "Except for the execution of instruments under seal or for the conduct of transactions required by statute to be authorized in a particular way, apparent authority to do an act is created as to a third person by written or spoken words or any other conduct of
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and causes loss to clients of the firm. In most states, a distinction is drawn between knowledge of the firm's general business activities and the confidential affairs as they affect one client. Thus, there is no imputation if the partner is acting against the interests of the firm as a fraud. There
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If the agent has actual or apparent authority, the agent will not be liable for acts performed within the scope of such authority, as long as the relationship of the agency and the identity of the principal have been disclosed. When the agency is undisclosed or partially disclosed, however, both the
204:
An agent who acts within the scope of authority conferred by their principal binds the principal in the obligations they create against third parties. There are essentially three kinds of authority recognized in the law: actual authority (whether express or implied), apparent authority, and ratified
798:
Restatement of Agency (Second) § 1. Agency; Principal; Agent. "(1) Agency is the fiduciary relation which results from the manifestation of consent by one person to another that the other shall act on his or her behalf and subject to her control, and consent by the other so to act. (2) The one
234:
Implied actual authority, also called "usual authority", is authority an agent has by virtue of being reasonably necessary to carry out his express authority. As such, it can be inferred by virtue of a position held by an agent. For example, partners have authority to bind the other partners in the
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A third party may rely in good faith on the representation by a person who identifies himself as an agent for another. It is not always cost effective to check whether someone who is represented as having the authority to act for another actually has such authority. If it is subsequently found that
450:
of the United
Kingdom (which includes both England and Scotland) provides that a partner who acts within the scope of his actual authority (express or implied) will bind the partnership when he does anything in the ordinary course of carrying on partnership business. Even if that implied authority
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Apparent authority (also called "ostensible authority") exists where the principal's words or conduct would lead a reasonable person in the third party's position to believe that the agent was authorized to act, even if the principal and the purported agent had never discussed such a relationship.
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2 QB 147, Slade J, "Ostensible or apparent authority... is merely a form of estoppel, indeed, it has been termed agency by estoppel and you cannot call in aid an estoppel unless you have three ingredients: (i) a representation, (ii) reliance on the representation, and (iii) an alteration of your
872:
Restatement of Agency (Second) § 8A. Inherent Agency Power. "Inherent agency power is a term used in the restatement of this subject to indicate the power of an agent which is derived not from authority, apparent authority or estoppel, but solely from the agency relation and exists for the
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Secondly, commercial agents and principals must not exploit asymmetries in their agency relationship in such a manner that frustrates the legitimate expectations of the other party. In this respect, whether a conduct is in breach of the
Obligation must be appraised holistically, considering all
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Actual authority can be of two kinds. Either the principal may have expressly conferred authority on the agent, or authority may be implied. Authority arises by consensual agreement, and whether it exists is a question of fact. An agent, as a general rule, is only entitled to indemnity from the
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An agent must not accept any new obligations that are inconsistent with the duties owed to the principal. An agent can represent the interests of more than one principal, conflicting or potentially conflicting, only after full disclosure and consent of the principal. An agent must not usurp an
636:
The
Commercial Agents Regulations require agents to act “dutifully and in good faith” in performing their activities (Reg. 3); co-extensively, principals are required principals to act “dutifully and in good faith” in their “relations” with their commercial agents (Reg 4). Though there is no
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Withdrawal by the agent – however, the principal cannot revoke an agency coupled with interest to the prejudice of such interest. An agency is coupled with interest when the agent himself has an interest in the subject-matter of the agency, e.g., where the goods are consigned by an upcountry
455:
to the other partners, or to the firm if a separate personality. The other partners or the firm are the principal and third parties are entitled to assume that the principal has been informed of all relevant information. This causes problems when one partner acts fraudulently or
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If the agent has acted within the scope of the actual authority given, the principal must indemnify the agent for payments made during the course of the relationship whether the expenditure was expressly authorized or merely necessary in promoting the principal's business.
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Authority by virtue of a position held to deter fraud and other harms that may befall individuals dealing with agents, there is a concept of
Inherent Agency power, which is power derived solely by virtue of the agency relation. For example,
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transaction to a business agency, that acts as a 3rd party, in order to finalize the deal. This happens for example when you move over an entity to an intermediary holding company, before settling it into its final destination entity.
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principal if they have acted within the scope of their actual authority, and if they act outside of that authority they may be in breach of contract, and liable to a third party for breach of the implied warranty of authority.
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agent and the principal are liable. Where the principal is not bound because the agent has no actual or apparent authority, the purported agent is liable to the third party for breach of the implied warranty of authority.
258:" or the "doctrine of holding out", where the principal will be estopped from denying the grant of authority if third parties have changed their positions to their detriment in reliance on the representations made.
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According to section 184 as between the principal and third persons, any person (whether he has contractual capacity or not) may become an agent. Thus, a minor or a person of unsound mind can also become an agent.
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If the agent has acted without actual authority, but the principal is nevertheless bound because the agent had apparent authority, the agent is liable to indemnify the principal for any resulting loss or damage.
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acquiesced, the failure to notify all concerned of the agent's lack of authority is an implied ratification to those transactions and an implied grant of authority for future transactions of a similar nature.
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the principal which, reasonably interpreted, causes the third person to believe that the principal consents to have the act done on his behalf by the person purporting to act for him."
626:, and forms a core set of rules necessary for the smooth functioning of business. Agency law is primarily governed by the Common law and to a lesser extent by statutory instruments.
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in the
Commercial Agents Regulations 1993. Thus, agent and principals in a commercial agency relationship are subject both to the Common law and the Commercial Agents Regulations.
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This has become a more difficult area as states are not consistent on the nature of a partnership. Some states opt for the partnership as no more than an aggregate of the
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603:. In real estate brokerage, the buyers or sellers are the principals themselves and the broker or his salesperson who represents each principal is his agent.
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306:, all executives and senior employees with decision-making authority by virtue of their declared position have apparent authority to bind the corporation.
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The reciprocal rights and liabilities between a principal and an agent reflect commercial and legal realities. A business owner often relies on an
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In return, the principal must make a full disclosure of all information relevant to the transactions that the agent is authorized to negotiate.
290:, where it is synonymous with "implied actual authority"). It has been explained as a form of apparent authority, or "inherent agency power".
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Special agents are authorized to conduct either only a single transaction or a specified series of transactions over a limited period of time.
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agents, the principal is bound by the contract entered into by the agent, so long as the agent performs within the scope of the agency.
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446:. This form of agency is inherent in the status of a partner and does not arise out of a contract of agency with a principal. The
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684:) written by someone else. In law, an allograph is a document not written by any of the parties involved. In American law,
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442:"a is a legal person distinct from the partners of whom it is composed" and so a partner is the agent of the partnership
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1914:
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defines agent as “a person employed to do any act for another or to represent another in dealings with third persons”.
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In 1986, the
European Communities enacted Directive 86/653/EEC on self-employed commercial agents. In the UK, this was
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688:(checks) written by an agent of behalf of, and with the authority of, a principal are allographs for that principal.
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General agents hold a more limited authority to conduct a series of transactions over a continuous period of time; and
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e.g. GHL Fridman, 'The Demise of
Watteau v Fenwick: Sign-O-Lite Ltd v Metropolitan Life Insurance Co' (1991) 70
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agents and the third parties with whom they deal on their principals' behalf (external relationship); and
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In
Ireland, Directive 86/653/EEC was implemented in the Commercial Agents Regulations of 1994 and 1997.
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Express actual authority means an agent has been expressly told they may act on behalf of a principal.
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may also act as an agent: For example, two corporate groups may assign the task of intermediating an
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the alleged agent was acting without necessary authority, the agent will generally be held liable.
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When an agent's authority is terminated, it operates as a termination of subagent also (s. 210).
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The internal agency relationship may be dissolved by agreement. Under sections 201 to 210 of the
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Universal agents hold broad authority to act on behalf of the principal, e.g. they may hold a
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opportunity from the principal by taking it for himself or passing it on to a third party.
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for whom action is to be taken is the principal. (3) The one who is to act is the agent."
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agents and principals (internal relationship), known as the principal-agent relationship;
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have apparent authority to bind the other partners in the firm, their liability being
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745: – legal doctrine in United States, the United Kingdom, Canada and South Africa
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or another person to conduct a business. In the case of a corporation, since a
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Person representing another person in legal matters, and the laws enabling this
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An exploration of the
European dimension of the Commercial Agents Regulations
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a duty to undertake the task or tasks specified by the terms of the agency;
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882:
Pandia – Principles of Mercantile Law, 8th edition, by Ramkrishna R. Vyas.
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protection of persons harmed by or dealing with a servant or other agent."
772: – Someone designated to receive service of process in a legal action
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558:) is a person who is authorized to act on behalf of another (called the
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In India, for the purposes of contractual law, section 182 of the
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An agent owes the principal a number of duties. These include:
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Commercial Agents Directive - Termination of Commercial Agency
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724: – Legal services provided to the entertainment industry
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Alternatively, agency may be terminated by operation of law:
264:
Rama Corporation Ltd v Proved Tin and General Investments Ltd
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who have joined the firm. Others treat the partnership as a
117:, who is authorized to act on behalf of another (called the
357:
a duty to discharge his duties with care and due diligence;
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a partner is the agent of the other partners, whereas in
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Pages displaying short descriptions of redirect targets
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Pages displaying short descriptions of redirect targets
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760: – Concept in English law regarding beneficiaries
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principals and the third parties when the agents deal.
935:"Commercial Agency and the Duty to Act in Good Faith"
377:, an agency may come to an end in a variety of ways:
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Pages displaying wikidata descriptions as a fallback
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Pages displaying wikidata descriptions as a fallback
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978:, Orpen Franks Solicitors, accessed 2 December 2020
622:Agency law in the United Kingdom is a component of
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By discharge of the contractual agency obligations.
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736: – Relationship between employee and employer
588:Agency relationship in a real estate transaction
113:relationships that involve a person, called the
385:By the agent renouncing the business of agency;
185:) or have a professional relationship, say, as
1101:
43:The examples and perspective in this article
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1009:A Glossary of Contemporary Literary Theory
718: – A person who works for an employer
1080:Commercial Law: Text, Cases and Materials
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766: – Informal currency transfer system
81:Learn how and when to remove this message
2253:History of the American legal profession
478:Agency relationships are common in many
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676:An allograph may be the opposite of an
268:position resulting from such reliance."
165:There are three broad classes of agent:
7:
903:Law Commission Report 283 (Archived)
1063:West's Encyclopedia of American Law
700: – aspect of UK commercial law
160:Brief statement of legal principles
466:jurisdictions, their liability is
461:is more likely to be liability in
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1237:Restitution and unjust enrichment
680:– i.e. a person's words or name (
319:Liability of agent to third party
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399:By the insanity of either party;
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2248:History of the legal profession
942:Oxford Journal of Legal Studies
730: – American legal doctrine
337:Liability of principal to agent
328:Liability of agent to principal
1:
1065:– via encyclopedia.com.
933:Tosato, Andrea (2016-09-01).
631:implemented into national law
607:Applications in jurisdictions
406:(insolvency) of either party;
396:By the death of either party;
892:Partnership Act 1890, s. 4.
1013:, Oxford University Press,
57:, discuss the issue on the
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1915:International legal theory
1394:International slavery laws
1389:International human rights
1384:International criminal law
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418:Partnerships and companies
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1968:Administration of justice
1078:LS Sealy and RJA Hooley,
506:contract negotiation and
1745:Basic structure doctrine
1595:Natural and legal rights
1476:Public international law
1005:Jeremy Hawthorn (2000),
375:Indian Contract Act 1872
230:Implied actual authority
222:Express actual authority
1925:Principle of typicality
1399:International trade law
819:Rosenbaum v Belson 1900
752:Principal–agent problem
554:(also referred to as a
914:Andrea Tosato (2010),
734:Independent contractor
595:transactions refer to
302:(see below), and in a
101:dealing with a set of
1920:Principle of legality
1679:Delegated legislation
1379:Intellectual property
989:"Document-Id: 911000"
830:"Document-Id: 911000"
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698:Agency in English law
618:Agency in English law
597:real estate brokerage
205:authority (explained
148:can only act through
2138:Barristers' chambers
2080:Legal representation
2018:Justice of the peace
1364:Financial regulation
743:Ostensible authority
572:with a third party.
474:Agency relationships
448:Partnership Act 1890
109:and non-contractual
63:create a new article
55:improve this article
45:may not represent a
2173:Election commission
1885:Expressive function
1414:Landlord–tenant law
1313:Consumer protection
954:10.1093/ojls/gqv040
810:Cropper v Cook 1867
512:business management
495:(insurance agency,
2131:Legal institutions
1998:Lawsuit/Litigation
1988:Dispute resolution
1793:Catholic canon law
1501:State of emergency
1464:Will and testament
1188:Law of obligations
1141:Constitutional law
1131:Administrative law
1082:(4th edn OUP 2009)
1038:The Law Dictionary
601:mortgage brokerage
570:legal relationship
245:Apparent authority
239:Apparent authority
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1973:Constitutionalism
1895:Law and economics
1733:Act of parliament
1471:Product liability
1424:Legal archaeology
1349:Environmental law
1343:Entertainment law
1183:International law
728:Faithless servant
722:Entertainment law
707:Corporate officer
662:Contract Act 1872
624:UK commercial law
468:joint and several
300:joint and several
283:Watteau v Fenwick
274:Watteau v Fenwick
174:(also known as a
172:power of attorney
107:quasi-contractual
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65:, as appropriate.
16:(Redirected from
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1580:Human rights
1568:Divine right
1558:Constitution
1526:Women in law
1444:Military law
1439:Marriage law
1434:Maritime law
1333:Election law
1273:Aviation law
1263:Abortion law
1215:Property law
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1486:Reparations
1481:Refugee law
1404:Jurimetrics
1345:(Media law)
1283:Banking law
1278:Amnesty law
1256:Disciplines
1193:Private law
1059:"Allograph"
1034:"Allograph"
593:Real estate
501:accountancy
458:negligently
436:English law
432:corporation
369:Termination
304:corporation
189:and client.
146:corporation
103:contractual
2326:Agency law
2320:Categories
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2085:Prosecutor
2023:Magistrate
1810:Jewish law
1768:Common law
1689:Rulemaking
1684:Regulation
1634:Law making
1573:Divine law
1549:Legal code
1496:Sports law
1419:Law of war
1369:Health law
1354:Family law
1338:Energy law
1288:Bankruptcy
1225:Punishment
1220:Public law
1073:References
1043:17 October
863:Review 329
758:Cestui que
516:publishing
487:employment
404:bankruptcy
71:March 2022
18:Agency law
2183:Judiciary
2178:Executive
2153:The bench
2090:Solicitor
2065:Barrister
1945:Sociology
1930:Pseudolaw
1870:Anarchist
1827:Roman law
1815:Parsi law
1800:Hindu law
1788:Canon law
1763:Civil law
1716:Concordat
1607:Precedent
1516:Trust law
1491:Space law
1328:Drugs law
1198:Procedure
1136:Civil law
962:0143-6503
682:signature
678:autograph
672:Allograph
561:principal
508:promotion
440:Scots law
314:Liability
276:in the UK
200:Authority
180:civil law
119:principal
111:fiduciary
59:talk page
2290:Category
2232:Tribunal
2217:Military
2060:Attorney
2030:Judgment
1890:Feminist
1805:Jain law
1602:Case law
1323:Cyberlaw
1230:Corporal
1208:Criminal
1178:Evidence
1168:Doctrine
1146:Contract
850:1 QB 346
716:Employee
692:See also
296:partners
256:estoppel
249:Estoppel
142:employee
136:Concepts
53:You may
2304:Outline
2241:History
2148:The bar
2122:Verdict
2070:Counsel
2050:Justice
1905:History
1728:Statute
1544:Charter
1506:Tax law
1454:Probate
686:Cheques
581:M&A
556:manager
532:theatre
482:areas.
453:imputed
402:By the
176:mandate
2222:Police
2193:Agency
2075:Lawyer
1820:Sharia
1711:Treaty
1706:Repeal
1652:Decree
1563:Custom
1459:Estate
1409:Labour
1173:Equity
1017:
960:
764:Hawala
599:, and
566:client
538:, and
528:movies
444:per se
346:Duties
187:lawyer
2297:Index
2163:Court
2107:Trial
2013:Judge
1854:Yassa
1657:Edict
1203:Civil
1156:Crime
938:(PDF)
777:Notes
656:India
548:agent
540:sport
524:music
115:agent
61:, or
2045:Jury
1993:Fiqh
1849:Xeer
1247:Tort
1163:Deed
1045:2023
1015:ISBN
958:ISSN
463:tort
247:and
207:here
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