Cyprus - Andreas Neocleous & Co

CYPRUS
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power to bind his principal by contract and by acts connected with the
performance of a contract, or he may have power to receive property for his
principal or make a valid disposition of his principal's property. Similar
reasoning may appear in areas such as torts or evidence.
The legal doctrines that have developed can be divided into two broad
categories. The first category relates to the agent's power to bind his principal
and is of great importance to third parties dealing with such agents. The second
category concerns the rights and liabilities of the principal and the agent inter se
and imposes fiduciary duties on the agent, and regulates his rights to
remuneration and indemnity. The first category concerns the external aspects of
agency, whereas the second regulates the internal aspects of agency.
Where the agent's authority results from a manifestation of consent that he
should represent or act for the principal, expressly or impliedly made by the
principal to the agent himself, the authority is called actual authority, express or
implied.
Where the agent's authority results from such a manifestation made by the
principal to a third party, the authority is called apparent authority. 1
Section 147 of the Contract Law provides that implied authority may be inferred
from the circumstances of the case. Any written or oral evidence or the usual
business practice may be regarded as circumstances of the case. As a result, the
agreement between agent and principal need not be contractual. An agent can
act gratuitously. The consent may also be given subsequently by ratification.
Cyprus law recognizes seven categories of agents:
General Agent
A general agent has authority to act for his principal in all matters concerning a
particular trade or business, or to do some act in the ordinary course of his trade,
profession or business, for example, as a solicitor or factor.
Special Agent
A special agent is an agent who has authority only to do some particular act or to
represent his principal in some particular transaction not being in the ordinary
course of his trade, profession or business as an agent.
Sub-Agent
A sub-agent is defined under section 151 of the Contract Law as 'a person
competent to contract, employed by and acting under the control of the original
agent in the course of business of the agency'.
Section 152 provides that if a sub-agent is properly appointed, the principal is,
as far as third parties are concerned, represented by the sub-agent and is bound
1 Bowstead on Agency, 14th Edition.
(Release 2 – 2013)