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methods are as follows....

1- Agency by consent

Consent may be express or implied. An agency can be expressly created either orally or in writing. There is

only one exception to this, which is that if the agent is to execute a deed on the principal's behalf (for

example a conveyance of land or a lease exceeding three years) then the agency must be created by deed.

Essentially this means that the agent is given a power of attorney.

2-Agency by estoppel (or 'holding out')

Agency by estoppel arises by operation of law and is no less effective than an agency expressly created. It arises

` When the words or conduct of the principal give to a third party the impression that the

person who purports to contract with the third party is the agent of the principal, and

` The third party, as a result, acts upon this.

The principal is 'estopped', or prevented, from denying the existence of the agency

3-Agency of necessity

An agency of necessity is another way in which an agency can arise by operation of law. Its origins can be

found in mercantile law, and in shipping law in particular. It may arise where a person is faced with an

emergency in which the property or interests of another person are in imminent jeopardy and, in order to

preserve that property or those interests, it becomes necessary to act for that person without his

authority. An agency of necessity probably only applies where there is already some existing contractual

relationship between the parties, as the law is highly unlikely to allow a person to be bound by the act of a

complete stranger.

4-Ratification

In certain circumstances the relationship of principal and agent can be created or extended with

retrospective effect, that is, once the contract has been entered into by the agent and third party.

Ratification only validates past acts of the purported agent. It gives no authority for the future.

Thus, where A makes a contract on behalf of P at a time when A has no authority from P, P may later ratify

the contract. This will have the retrospective effect of establishing an agency as at the time the contract was

made. All parties are then in the same position as if the principal had been the original contracting party, ie

the principal may sue or be sued by the third party and the agent no longer has any liability.

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