The Estate Brokers Authority’s (EAA) goal in publishing this monograph is to offer property agency practitioners a common understanding of the laws and laws relating to encumbrances in Hong Kong. If the agent has acted with out precise authority, however the principal is however certain as a result of the agent had apparent authority, the agent is liable to indemnify the principal for any resulting loss or harm. A principal’s termination of the agency relationship does not essentially have the identical effect vis-à-vis the agent as it has with respect to the third get together.
The agent employed to handle investments has an obligation to deal solely as would a prudent investor with reference to the principal’s personal financial scenario. Solely in such a case can there be direct illustration—the place the principal alone is the party to the contract—in distinction to oblique representation.
In such a situation it was inconceivable to confer proper or duties on a 3rd party. Extra essential, the principal is answerable for the consequences of acts that the agent has been directed to carry out. Even when the agent does act with out authority, the principal could ratify the transaction and accept legal responsibility on the transactions as negotiated.
An agent who acts within the scope of authority conferred by his or her principal binds the principal within the obligations she or he creates against third events. The English Partnership Act 1890 provides that a associate who acts throughout the scope of his precise authority (specific or implied) will bind the partnership when he does anything in the unusual course of carrying on partnership business.
The first purchaser relied on the obvious authority of the agent and won’t be penalized even when the owner maintains that no authority was ever given to the agent to enter into the contract. If agent breaches their responsibility, they are going to be liable.