Explain the ways in which an agency may be created.

1. 1 · Open in two lines. Agency is a relationship where an agent creates legal relations between his principal and third parties: he who acts through another acts himself.
2. 2 · Draw the triangle. [Diagram: principal → agent → third party → principal]
3. 3 · Express and implied agency. Written or oral appointment, power of attorney; authority implied from conduct or position.
4. 4 · Agency of necessity. Emergency, no way to contact the principal, good faith.
5. 5 · Ratification.
   • Later approval dates back to the act.
   • Conditions: existing principal (Kelner v Baxter), whole act, reasonable time, lawful act, full knowledge.
6. 6 · Estoppel. Holding out creates apparent authority (Freeman & Lockyer v Buckhurst Park).
7. 7 · In Sri Lankan business. Tea brokers at the Colombo Tea Auction; a power of attorney for a family member abroad.
8. 8 · Close in one line. However created, the agent binds the principal only within actual or apparent authority.

Scoring tip: Five clear headings with one example each. The two case names on ratification and estoppel lift the answer.