Formalities of an agency contract
For a contract to be considered a valid contract it should include the necessary elements of a contract agreement; (Safrath, 2011)
For an agency or agent principal relationship contract
There are no particular formalities in the creation of this contract, as agency contracts can be formed in any way possible. Even though agency is formed upon a consensual relationship meaning both parties may show consent to have this relationship it may at times not include the values of consideration. Contract can be created expressly in writing or be just by word of mouth, though it is advisable and preferable that the contract be in writing. For an appointment of agent over a period that is more than one year. It is only proper that the contract be made in writing through the power of an attorney, in written form between the principal and the agent. If the agent is appointed verbally, formally written contract can be done later to keep records on what was agreed. (Moses.A.Kimuli, 2003)
However, a person appointed to carry out duty on behalf of its principal should be formally appointed by a formal instrument under the legal seal of an attorney. estoppel of principal, at some point the principal may not follow what was agreed in that case the principal may be estoppel by the claims that was previously made by him in the first place. Therefore, it is strongly advisable that if a contract has to be made all agreed decisions must be made in written form between a principal and an agent so that written evidence can be used as a follow up proof for statements that are breached. (Moses.A.Kimuli, 2003)
Licensing of particular 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)
Listed agents as; auctioneers, insurance agents, real estate agents and brokers are each required to pass certain requirements.
• Every applicant who wish to apply for a license must be of age 18 years and above.
• Must pass relevant qualifying examination or be competent in units taken under the chosen course.
• Should formally be a holder of a license under the respective field taken. (J.H.P.Murray, 1934)
• Has to be considered as a fit and proper person to hold a license.
for 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 him is a certified lawyers license.
For cases such as a charity auction sale the auction can be done by anyone capable enough to carry out the auction it does not necessary need a licensed auctioneer to conduct such sale.
Bernedette A. Safrath. (2011). 7 Required Elements of an Enforceable Contract. Retrieved April 15, 2018, from
Moses.A.Kumili. (2003). Agency contract. In Business law in papua new guinea (p.337). Institute of Business Studies: Papua New Guinea.
Mietus, Adamson, Conry. (1988). Applied Business Law. Cincinati: South-Western Publishing Co.


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