FREEMAN & LOCKYER v BUCKHURST PARK PROPERTIES (MANGAL) LTD (1964) - AGENCY: CREATION

"A legal relationship between principal and agent created by consensual agreement to which they alone are the parties".

Where a company holds out a person as their managing director, and that person makes a contract with a third party within the ordinary ambit of the authority of a managing director, the third party need not inquire whether he is properly appointed. K and H formed the defendant company. K and H and two nominees were directors of the company.

The articles of…