The authority given to an agent can be in writing or can be given orally. However, it can also be implied from the actions or behaviour of the parties involved. That authority can be a general one (for example, to look after all the travel affairs of a person) or it can be specific (for example, to finalise the purchase of a property) or in some cases it can be an authority that is unlimited. Agencies can also be created by circumstances, even without the approval or the knowledge of the principal.
For example, if there is a fire of a dwelling and someone takes it upon themselves to turn on the water and put out the fire, then the person carrying out that action is basically an agent for the owner of the home (the principal). The agency has been created by circumstances brought about in an emergency.
An agency can also be presumed under the law. For example, if the wife of a man enters a supermarket and purchases goods and has done so in the past without challenge, then when that lady charges up those goods on their family account, she is acting as an agent for her husband whose name the account is under.
An agency can also be created where someone...
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