For a contract to be considered a valid contract it should include all the necessary elements of a contract; (Safrath, 2011)
In an agency or agent principal relationship contract;
• No particular formality is used to create such relationship.
• Express and implied; It can be created expressly through writing and by word of mouth or in implied form through the action of the parties.
• Expressly means_ agreement created through writing, word of mouth or a use of both.
• Implied means_ agreement is created through the nature/ conduct of the contract (no oral or written format) are needed to create such relationship.
• Power of an attorney; appointment of agents over a period that is of more than one year is strongly advisable to be made expressly in written form. (Moses.A.Kimuli, 2003)
• Consent; consent must be manifested by both the agent and principal to create an agency relationship.
• No Consideration required; unlike a standard contract creation of a principal agent relationship does not require valuable consideration. (Slideplayer, 2018)
Licensing of agents
To protect the public against unqualified workers, all states require that agents in certain occupations be licensed. For example, this usually involves successful passing of professional examinations by persons who want to serve as auctioneers, insurance agents, lawyers, real estate and brokers. (Mietus; Adamson; Conry, 1988)
Conditions required to pass as an agent to receive licenses.
• Applicant for a license must be of age 18 years and above.
• Must sit for and pass relevant examination to be able to receive a license.
• Has to be considered as a fit and proper person to hold a license. (Estate Agents Authority, 2016)
An Agent such as a lawyer may not necessarily need to sit for an examination to be capable to perform the work of an auctioneer, estate agent or a broker, the only thing required for a lawyer is a certified lawyers license.
And as for charity auction sale the auction can be done by anyone capable to carry out the auction it does not necessary need a licensed auctioneer to conduct sale.
Bernedette A. Safrath. (2011). 7 Required Elements of an Enforceable Contract. Retrieved April 15, 2018, from https://www.sapling.com/11368503/7-required-elements-enforceable-contract
Moses.A.Kumili. (2003). Agency contract. In Business law in papua new guinea (pp.337, 338). Institute of Business Studies: Papua New Guinea.
Law of business organization. (n.d.) Agency and employment – One agency and its relations to others. Retrieved April 19, 2018, from http://slideplayer.com/slide/6199336
Mietus, Adamson, Conry. (1988). Applied Business Law. Cincinati: South-Western Publishing Co.
Estate agents authority. Licensing requirements. (2016). Retrieved April 15, 2018, from