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If the agent has acted inside the scope of the actual authority given, the principal must indemnify the agent for payments made in the course of the course of the relationship whether or not the expenditure was expressly licensed or merely necessary in promoting the principal’s enterprise.
The principal is certain by the acts of the agent, carried out in carrying out entrusted duties and throughout the scope of agent’s authority An agency can be created by (1) specific agreement , whether oral or written, (2) implication, based mostly on the customized or observe of the trade , or (three) conduct of the principal.
Within the case of Watteau v Fenwick , 6 Lord Coleridge CJ on the Queen’s Bench concurred with an opinion by Wills J that a 3rd get together may hold personally liable a principal who he did not know about when he bought cigars to an agent that was acting outside of its authority.