Tan Cheng Han, The Law of Agency

Date01 January 2019
DOI10.3366/elr.2019.0544
Pages150-151
Author
Published date01 January 2019

This book, written by a leading expert on agency law, focusses principally on the law of Singapore. This review seeks to illustrate why the book is highly relevant for a Scottish readership.

Both agency law in Scotland, and agency law in Singapore, lie broadly within the Common Law tradition. Proof of this can be found in the fact that the English definition of apparent authority is often relied upon in the courts of both countries. Neither country benefits from a large flow of case law, and this is problematic given that both legal systems rely on precedent to develop the law. In both countries, therefore, a new development in English law is looked at with significant interest. If a solution is required to an agency problem in Scots law, it may be appropriate for the courts to look to English law for inspiration. The Scottish courts often do so, see, for example, Gray v Braid Logistics (UK) Ltd ([2017] CSOH 44), in which Lord Bannatyne developed the Scots law of ratification by reference to Owners of the Ship “Borvigilant” v Owners of the Ship “Romina G” ([2003] EWCA Civ 935, [2003] 2 All ER (Comm) 736). This book illustrates this process taking place in the context of the law of Singapore. In the book, the author weighs and considers developments in English law, at times recommending their adoption and, at others, suggesting their rejection. To this extent, therefore, there is a close parallel with Scots law. It need hardly be said, however, that this process should take account of the “mixed” nature of Scots law. The Scottish court must ask whether the English development is consistent with the overall structure of Scots law. A development in English agency law relating, for example, to the doctrine of consideration, should not be used as a model for Scots law.

Professor Tan's analysis of apparent authority provides a good example of the process described above. Apparent authority is an important part of any system of agency law, acting to protect third parties from the activities of unauthorised agents. The nature of the concept has been highly controversial, however. Orthodoxy, found in cases such as Armagas Ltd v Mundogas SA ([1986] AC 717), dictates that the representation of authority must come from the words or conduct of the principal. More recently, doubt has been introduced, firstly in First Energy (UK) Ltd v Hungarian International Bank Ltd ([1993] 2 Lloyd's Rep 194) and, secondly, in Kelly v Fraser ([2012] 3 WLR 1008). The requirement that...

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