Agency by estoppel

Agency by estoppel arises when a person or entity, despite not having formal authority, is deemed to act as an agent due to the conduct or representations made to third parties, creating an expectation of agency that binds the principal. In Jamaica, this principle is particularly relevant in real estate transactions, where individuals or entities may be held accountable for actions taken by someone who appeared to act on their behalf, even without explicit authorization. For example, if a property owner allows someone to act as their agent and third parties rely on this representation, the owner may be estopped from denying the agency relationship. Globally, the doctrine of agency by estoppel serves to protect third parties who act in good faith based on the appearance of authority. This doctrine ensures fairness by holding principals accountable for the actions and representations made by those who, through their conduct, have led others to reasonably believe in an agency relationship.