Under a contractual agency, if the agent contracts in the principal’s name after the agency has ended, the other party may still treat the contract as made under it, provided neither knew the agency had ended and neither could have known with ordinary care.
Under a contractual agency, if the agent contracts in the principal’s name after the agency has ended, the other party may nevertheless treat the contract as having been made under it, provided that at the time of contracting neither they nor the agent knew the agency had ended, and neither could have known had they exercised the care an ordinary person would in the circumstances.
What this means in practice
The law protects a good-faith party who dealt with someone who appeared to be an agent. What counts is what both parties knew at the time, and what an ordinary person could have found out with ordinary care.
What to do
- If you are a principal and have ended an agency, notify in writing those who deal with your agent, and register the revocation where required.
- If you are contracting with an agent, ask to see the power of attorney and its date before signing.
Articles here are general legal information for public awareness and are not legal advice on any specific matter. Every case has its own facts, and any decision needs a full review of your file.
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