“Agency by necessity” refers to a legal concept that arises when an individual or entity (the principal) is unable to act on their own behalf, and another party (the agent) takes actions on behalf of the principal out of necessity. This concept recognizes that certain situations may require someone to act on behalf of another, even without formal authorization, to prevent harm or fulfill essential needs.

Key points about agency by necessity include:

1. **Emergency or Necessity:**
– Agency by necessity typically arises in emergency situations or circumstances where immediate action is required to protect the interests of the principal. It may occur when the principal is unable to act due to illness, incapacity, or other unforeseen situations.

2. **Implied Authority:**
– In agency by necessity, the authority of the agent is implied rather than expressly granted. The agent is assumed to have the authority to take actions that are reasonably necessary to address the emergency or fulfill the essential needs of the principal.

3. **Preservation of Interests:**
– The primary purpose of agency by necessity is to preserve the interests of the principal. The agent’s actions are justified by the urgency and necessity of the situation.

4. **No Formal Agreement:**
– Unlike typical agency relationships that are based on a formal agreement between the principal and the agent, agency by necessity arises without a pre-existing agreement. It is a legal doctrine that recognizes the need for someone to act in situations where obtaining formal authorization may not be feasible.

5. **Example Scenarios:**
– Common scenarios where agency by necessity may arise include situations where a person is unable to make financial decisions due to sudden illness or incapacity, and a family member or friend must step in to manage their affairs temporarily. Similarly, it can occur in emergency medical situations where immediate decisions must be made for the well-being of an incapacitated person.

6. **Limitations:**
– The authority of the agent in agency by necessity is limited to actions that are reasonably necessary to address the emergency or fulfill essential needs. Once the immediate necessity has passed, the agency by necessity relationship may terminate.

7. **Liability and Accountability:**
– Agents acting under agency by necessity are generally not held personally liable for their actions, provided they acted in good faith and in the best interests of the principal. However, the concept does not absolve agents from accountability for actions that go beyond the scope of necessity or are not in the principal’s best interests.

It’s important to note that the specific rules and implications of agency by necessity may vary by jurisdiction, and legal advice may be necessary to understand how this concept applies in a particular situation. While agency by necessity provides a legal framework for emergency situations, it is generally a temporary and limited form of agency.