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Legal relationships between principals and third parties
The law of agency in South Africa regulates the performance of a juristic act on behalf or in the name of one person ("the principal") by another ("the agent"), who is authorised by the principal to act, with the result that a legal tie (vinculum juris) arises between the principal and a third party, which creates, alters or discharges legal relations between the principal and a third party.[1][2][3][4][5][6][7] Kerr states that, in legal contexts, the word "agent" is most commonly used of a person whose activities are concerned with the formation, variation or termination of contractual obligations, and that agency has a corresponding meaning. It is the agent's position as the principal's authorised representative in affecting the principal's legal relations with third parties that is the essence of agency.
The term "agency" is sometimes used more broadly, to describe both the position of an agent as representative of a principal to perform juristic acts that affect the principal's legal relations with third parties, and also a relationship of mandate in which an "agent" is bound as mandatary to carry out some task for the principal as mandator.[8] In general, the aim of the appointment of an agent is the performance of a service for the principal, but many besides agents perform services for another. One must therefore consider other characteristics when identifying the nature of agency. It is the substance of the relationship that is important: The essence of agency is that the agent is the principal's authorised representative in effecting the principal's legal relationships with third parties.
^Tolalisator Agency Board OFS v Livanos 1987 (3) SA 283 (W) 291.
^Mason v Vacuum Oil Co. of SA Ltd 1936 CPD 219 at 223.
^Whittal v Alexandria Municipality 1966 (4) SA 297 (F) 301.
^Stuart 1966 Annual Survey 99-100.
^Wanda (De Wet) "Agency" LAWSA 2 ed vol 1 § 176.
^See Gibson Mercantile and Company Law chap 6.
^See Wanda (DeWet) "Agency" LAWSA 2 ed vol 1.
^Wanda (De Wet) "Agency" LAWSA 2 ed vol 1 § 175.
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