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Chapter 18 - Principle and agent. At the end of this chapter you should understand: the definition of an agency relationship; why contract law is relevant to the law of agency; the methods by which agency can be created including estoppel, necessity or ratification; the different types of agent, their roles and function;. | Lecture Fundamentals of business law (4th): Chapter 18 - Margaret L. Barron, Richard J.A. Fletcher