Okwejiminor v Gbakeji (2008) 5 NWLR (Pt.1079) 172 Mohammed JSC defined the concept of agency thus:- “Agency is the relationship which exists or arises where one person called the agent, has the authority or capacity to create legal relations by acting on behalf of another person called the principal, whereby the latter undertakes to be answerable for the lawful acts of the former provided it was done within the scope of the former’s authority, or ratified by the latter”.
FIVE WAYS IN WHICH PRINCIPAL AND AGENT RELATIONSHIP MAY ARISE
Usually, the relationship of Principal and agent may arise in anyone of five ways, namely: – 1. By express appointment whether orally or by letter of appointment or, indeed, by a Power of Attorney, Under this heading. No formality, such as writing is required for the valid appointment of an agent except for instance, where the authority of the agent is to execute a deed on behalf of a principal. in which case, the agency itself must be created by deed. 2. By ratification of the agent’s acts by the principal. See for example Bird v. Brown (1850) 4 Exch 786, Firth v. Staines (1897) 2 QB. 70 etc. This mode of creation of agency is sometimes expressed in the maxim omnis ratihabitio retrotrahitur et mandato priori aequiparatur. 3. By virtue of the doctrine of estoppel. 4. By implication of law in the case of agency of necessity and 5. By presumption of law in the case of cohabitation.
— Iguh JSC. Vulcan Gases Limited V. Gesellschaft Fur Industries Gasverwertung A.G.(G.I.V.) ( SC.67/1995, 4th May 2001)