Question

In certain circumstances, a person who has been entrusted with anothers property, may have to incur unauthorized expenses to protect or preserve it. This is known as _____.

• A. Agency of necessity
• B. Agency by operation of law
• C. Agency by holding out
• D. Agency by ratification

Answer 1

The correct option is A Agency of necessity

An agency of necessity arises due to some emergent circumstances. In emergency a person is authorised to do what he cannot do in ordinary circumstances. Thus, where an agent is authorised to do certain act, and while doing such an act, an emergency arises, he acquires an extra-ordinary or special authority to prevent his principal from loss.