Define: Agency By Necessity

Agency By Necessity
Agency By Necessity
What is the dictionary definition of Agency By Necessity?
Dictionary Definition of Agency By Necessity

Agency by necessity is a legal concept that arises when an individual (the agent) acts on behalf of another person (the principal) without explicit authority or consent, but out of necessity to protect the principal’s interests. This situation typically occurs when the principal is unable to act or make decisions due to physical or mental incapacity, emergency circumstances, or unforeseen events. The agent, in such cases, assumes responsibility and authority to act in the best interests of the principal, making decisions and entering into contracts on their behalf. Agency by necessity is recognized to ensure that the principal’s affairs are properly managed and protected when they are unable to do so themselves.

Full Definition Of Agency By Necessity

Agency by necessity is a legal concept that arises when a person (the agent) acts on behalf of another person (the principal) without their prior authorization or consent, but under circumstances where it is necessary to protect the principal’s interests. This agency relationship is created by operation of law and is based on the principle that it is better to have someone act on behalf of the principal in an emergency or urgent situation than to leave the principal’s interests unprotected.

For agency by necessity to be established, certain conditions must be met. Firstly, there must be a real and imminent necessity for the agent to act on behalf of the principal. This necessity typically arises in situations where the principal is unable to act themselves, such as when they are incapacitated, absent, or unable to communicate. Secondly, the agent must act in good faith and in the best interests of the principal, with the intention of protecting their interests. Lastly, the agent’s actions must be reasonable and proportionate to the circumstances.

When agency by necessity is established, the agent is granted certain powers and authority to act on behalf of the principal. These powers are limited to what is necessary to address the specific emergency or urgent situation. The agent is expected to act with reasonable care and skill, and they may be held liable for any negligence or misconduct in the performance of their duties.

The agency relationship created by necessity is temporary and terminates once the necessity no longer exists. The principal is not bound by any contracts or obligations entered into by the agent unless they choose to ratify them after the fact. However, the principal may be held liable for the agent’s actions if they receive a benefit from those actions.

Overall, agency by necessity provides a legal framework to protect the interests of a principal in emergency situations where they are unable to act themselves. It allows for someone to step in and make decisions on their behalf, ensuring that their interests are safeguarded.

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This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 29th March 2024.

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