... act as principal and agent, they are deemed to be principal and agent. (Ashford Shire Council v Dependable Motors Pty Ltd (1961) AC 336, (1961) 1 All ER 96, PC)" (Richard Card, Jennifer James; Law for Accountancy Students; 6th edition; 1997, p479) By estoppel "The agency can arise by estoppel where there is a representation made by the principal to the third party that the agent has authority to undertake certain acts on behalf of that principal. The arisen of agency by estoppel requires three criteria to be satisfied: firstly, there must be a representation by the principal; secondly, that representation must be relied on; thirdly, the third party who deals with the agent must not know that the agent is acting without authority. (Charrington Fuel Oil Ltd v Parvant Co Ltd (1988))" (Margaret and Ivor Griffiths; Commercial Law; 2nd edition; 2001) By ratification In some situations, a principal can choose to adopt ...

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