5/11/2011 Freeman Lockyer v Buckhurst Park Properties (Mangal)Ltd [1964]1 All ER 630 Diplock U:an 'actual'authority is a legal relationship between principal and agent created by a consensual agreement to which they alone are parties.Its scope is to be ascertained by applying ordinary principles of construction of contracts, including any proper implications from the express words used,the usages of the trade,or the course of business between the parties.To this agreement the contractor is a stranger;he may be totally ignorant of the existence of any authority on the part of the agent.Nevertheless,if the agent does enter into a contract pursuant to the 'actual'authority,it does create contractual rights and liabilities between the principal and the contractor... 11 Freeman Lockyer v Buckhurst Park Properties(Mangal)Ltd [1964]1 All ER 630 Diplock U:discussed the relationship between actual and apparent authorities-"they are quite independent of one another.Generally they co-exist and coincide,but either may exist without the other and their respective scopes may be different....It is on the apparent authority of the agent that the contractor normally relies in the ordinary course of business when entering into contracts..." "an 'apparent'authority is a legal relationship between the principal and the contractor created by a representation,made by the principal to the contractor,intended to be and in fact acted on by the contractor,that the agent has authority to enter on behalf of the principal into a contract of a kind within the scope of the 'apparent'authority,so as to render the principal liable to perform any obligations imposed on him by such contract." 12 65/11/2011 6 11 Freeman & Lockyer v Buckhurst Park Properties (Mangal) Ltd [1964] 1 All ER 630 • Diplock LJ: an ‘actual’ authority is a legal relationship between principal and agent created by a consensual agreement to which they alone are parties. Its scope is to be ascertained by applying ordinary principles of construction of contracts, including any proper implications from the express words used, the usages of the trade, or the course of business between the parties. To this agreement the contractor is a stranger; he may be totally ignorant of the existence of any authority on the part of the agent. Nevertheless, if the agent does enter into a contract pursuant to the ‘actual’ authority, it does create contractual rights and liabilities between the principal and the contractor … 12 Freeman & Lockyer v Buckhurst Park Properties (Mangal) Ltd [1964] 1 All ER 630 • Diplock LJ: discussed the relationship between actual and apparent authorities – “they are quite independent of one another. Generally they co-exist and coincide, but either may exist without the other and their respective scopes may be different. … It is on the apparent authority of the agent that the contractor normally relies in the ordinary course of business when entering into contracts …” • “an ‘apparent’ authority is a legal relationship between the principal and the contractor created by a representation, made by the principal to the contractor, intended to be and in fact acted on by the contractor, that the agent has authority to enter on behalf of the principal into a contract of a kind within the scope of the ‘apparent’ authority, so as to render the principal liable to perform any obligations imposed on him by such contract