AGENCY BY OPERATION OF LAW Meaning and
Definition
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Agency by operation of law refers to a legal concept where an individual or entity is legally appointed as an agent without the need for a formal agreement or appointment. It is a form of agency that is not based on the express consent or agreement of the principal and agent.
In this type of agency, the law recognizes a relationship between two parties based on their actions or circumstances. It typically arises in certain situations or events where it becomes necessary for someone to act on behalf of another person or entity to protect their interests.
Examples of agency by operation of law include cases where an individual becomes incapacitated or incompetent, and the law appoints a guardian or conservator to manage their affairs. Similarly, if someone passes away without specifying a representative in their will, the law may appoint an administrator to handle the deceased person's estate.
Agency by operation of law is based on the principle of necessity and serves to safeguard the interests of the principal. The agent assumes responsibilities and obligations to act in the best interests of the principal, similar to those found in a traditional agency relationship.
It is important to note that agency by operation of law does not require the consent or control of the principal. Instead, it is imposed by legal necessity or in circumstances where a principal-agent relationship is deemed necessary to protect the principal's interests.
