On 8 June 2016 the Supreme Court heard the appeal in Bailey and another v Angove’s PTY Limited, in which it was asked to consider the effect which terminating an agency has on the authority of the agent to collect debts owed to the principal.

Under the general law of agency, a principal may end its agent’s authority at any time. If the principal does so ignoring a contrary provision in the contract between them, then the agent’s authority David_Whitehead_ph[1]generally ends but the principal is in breach of contract.

In a judgment handed down on 27 July 2016 the Court held that the agent’s authority was not irrevocable, and did not survive the termination of the agency agreement by the principal. Continue reading »