What extent can a penson be responsible for the liability caused by another person who acted on this behalf. Though without prior authoriy under the law of agency?

Answer 1

The condition being referred to here falls under the Law of agency which is a part of Law of Contract. The present question can be answered by understanding two fundamentals in the Law of Agency.

These are actually two ways in which agency may be formed without proper approval. So when the facts are not covered under these two there is no creation of Agency and hence no liability involved. The two ways are:

1. Agency by Holding Out or Ageny by Estoppel- This is based upon the fundamental legal principle of Estoppel. As per this, if once X represents to A in presence of B, that he is an agent of B, then B shall be bound by acts of X unless he makes it public otherwise.

2. Agency by ratification- As per this principle, a person may in his own discretion act on behalf of another peron without that other person's consent. It is upon the peron for whom such acts are done to accept or reject such acts. If the acts are accepted/approved, they are said to be ratified and Agency by Ratification takes place.

For example, A has a apple orchard. B, without consent of A, arranges for the collection of all apples and packing for transportation. Now, if A gives his consent to the act of B, A ratifies the acts of B. In law A ratifies the agency of B.