AGENCY OF NECESSITY Meaning and
Definition
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An "agency of necessity" refers to a legal concept that allows an individual (referred to as the "agent") to act on behalf of another person (referred to as the "principal") when it is deemed necessary and beneficial for the principal's interests, even without the principal's prior authorization or consent. This concept generally arises in situations where the principal is unable to act for themselves or has become incapacitated.
The agent, acting in an emergency or situation of necessity, is authorized to make decisions and take actions that are reasonable and in the best interest of the principal. This agency can exist even if there is no pre-existing formal relationship between the agent and principal.
For an agency of necessity to be valid, certain requirements must be met. Firstly, there must be a genuine necessity or emergency situation that compels the agent to act on behalf of the principal. Secondly, the agent's actions must be reasonable and prudent, considering the circumstances of the situation. Lastly, the agent must act in good faith and solely for the benefit of the principal.
It is important to note that the concept of agency of necessity is based on common law principles and can vary in application across jurisdictions. The agent may potentially be held legally responsible for their actions and could be entitled to reimbursement or compensation for expenses incurred during the emergency situation.
