1) i) Agency can be created in number of ways either through express or implied

method. Explain 5 ways on agency can be created.

The relationship that exists between two persons wen one, called agent, is considered in
law to represent the other, called the principal, in such a way as to be able to affect the
principal’s legal position in respect of strangers to the relationship by the making of contract
or the disposition of property.

The first way to create agency is by express appointment. It is actual consent of

principal and agent. See Singham Sulaiman Sdn Bhd v Mega Palm Sdn Bhd. Next, second
way is by implied agreement. An agency is said to be implied when it is to be inferred from
the circumstances of the case. Implied Agreement is govern by Section 140 and Illustration,
Contract Act 1950. Third way is by usual authority. This is created by the agent occupying a
position which would normally carry with it authority to do an act of the kind in question.
Next, fourth way is by ratification. Ratification may be expressed or implied, Section 150,
Contract Act 1950. Last is by necessity. The elements of agency of necessity are there must
be a situation of necessity, the agent cannot obtain instructions from the principal. The agent
must act in good faith and in the interests of the principal and the agent’s act must be
reasonable and prudent.

Based on the definition, the agency can be created in 5 ways which are by express
appointment, by implied agreement, by usual authority, by ratification and by necessity.