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Agency law

Agency arising from necessity

This is also known as agency ‘by operation of law’ and occurs if each of the following
requirements is met:

 There is an emergency situation.

 It is not possible for the agent to communicate with the principal.

 The agent is acting good faith in the best interests of the principal.

The courts will only usually imply agency by necessity if there is an existing
contractual relationship between the agent and the principal.

Illustration 2 – Creation of agency

GREAT NORTHERN RAILWAY v SWAFFIELD (1874)

Facts:

GNR contracted to deliver the defendant’s horse to a particular railway station for
collection by the defendant. When the defendant failed to turn up, the
stationmaster made arrangements for the horse to be stabled overnight. GNR
sued to recover the costs.

Held:

GNR was entitled to the costs of stabling as it had become the agent of the
defendant by necessity.

Nowadays, ease of communication has meant this is a very rare type of agency and
of little practical importance.

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