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5
This book sets out the circumstances in which a principal may become bound by the acts of the agent. In many cases, this outcome is the result of the principal’s manifestation of assent that the agent should bring about the result sought. However, a principal may find his legal position affected even where the agent has acted in excess of the authority that was conferred on him, and also where the “agent” did not have any authority whatsoever. Such outcomes may be necessary to protect the legitimate interests of the third party and represent a cost that the principal has to bear for the convenience that comes from the use of an agent.
One major theme running through this book is that the law of agency has to balance the interests of all the actors in the tripartite principal-agent-third party relationship and strike an optimal balance between commercial convenience and fairness.
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