Agency by express agreement is a term that refers to a type of agency agreement that is established through explicit or direct agreement between two parties. This type of agency agreement is typically entered into through a written contract or agreement that outlines the terms and conditions of the relationship between the two parties.
In an agency by express agreement, the agent is authorized to act on behalf of the principal with the authority granted by the principal. The scope of authority granted to the agent is typically defined in the agreement, and the agent is expected to act within the limits of this authority.
The main advantage of an agency by express agreement is that it provides clarity and certainty for both parties involved. The agreement clearly defines the responsibilities and obligations of each party, which helps to avoid misunderstandings and disputes down the line.
Another key advantage of an agency by express agreement is that it can help to protect the interests of both parties. By establishing clear terms and conditions, both the principal and the agent know what is expected of them and can work together towards achieving their shared goals.
However, it is important to note that an agency by express agreement is not always necessary. In many cases, an agency relationship can be formed by implication or through the conduct of the parties involved.
For example, if a person consistently acts on behalf of another person in a particular context, it may be inferred that an agency relationship exists, even if there is no formal agreement in place.
In conclusion, agency by express agreement is a valuable tool for establishing clear and mutually beneficial agency relationships between two parties. However, it is important to carefully consider whether an express agreement is necessary in each individual case, as there may be situations where an implied agency relationship is sufficient. Ultimately, the key is to ensure that all parties involved understand their roles and responsibilities, in order to achieve the best possible outcome.