Corporate & Commercial Law. University of Central Punjab

2. Asma Yasmin
Rizwana Sarfraz
Presenters

3. Instructor
Muhammad
Nauman
Subject
Corporate & Commercial Law

4. Contract of
Agency
Topic

5. Introduction of agency
Essentialities of contract of
agency
Asma Yasmin

6. What is agency?
 Relationship between Principal and
Agent
 Authority to represent
 Binding for principal
 Responsible for acts of agent
 Responsibility of negligence on
principal
 Responsibility of negligence on agent
 No responsibility on minor agent
 Section 182-238 of Contract Act 1872.

8. Example:
Coca cola beverages appointed Muhammad
Ahmad Ali as its sales agent in district Jhang.
At a remuneration of Rs.30,000/- per month.
All the terms and conditions are settled in the
contract.

9. Who is agent?
Agent is a person
who represents
some other
person and is
authorized to do so,
by him.
Example:
In this example
Muhammad Ahmad
Ali is an agent who
is representing
Coca Cola and is
authorized by Coca
Cola to do so.

10. Who is principal?
The person who is
being represented
by agent, is called
as Principal.
Example:
In this Example
Coca Cola is
principal who is
being represented
by Muhammad

11. Kinds of agency
There are two types of
agency
 General Agency
 Special Agency

12. General Agency
Definition
The agent is authorized to do all
the act required to conduct a business.
Example:
Coca cola beverages employs
Muhammad
Reyan as a sales manager. This is a
general agency
contract and here Muhammad Reyan is
a

13. Special Agency
Definition
The agent is appointed to perform a
specific task.
Example:
Coca cola appointed Muhammad
Ahmad Ali as its sales agent in district
Jhang.

14. Essentialities of contract of agency
 There are five essentialities of agency
 Agreement
 Legal Relationship
 Capability to Contract
 Consideration not essential
 Intention of Agent to act for principal

15. Agreement
There must be an agreement in Agency.

16. Legal Relationship
 Legal relationship between agent and
principal
 Legal relationship between principal and third
party

17. Capability to Contract
 Competency of principal
 Solvent
 Not disqualified by law
 Competency of Agent
 Sound mind
 Not disqualified by law
 May be a minor

18. Consideration not essential
 Consideration is not necessary in
every case

19. Intention of Agent to act for principal
Intention of agent to act for principal is
necessary in the
contract of agency.

20. Topic
Rights and Duties of Agent
Rights and Duties of Principal
Rizwana Sarfraz

21. Rights of agent
 Remuneration
 Lien
 Indemnified for consequences
 Retainer
 Stoppage of goods in transit
 Compensate for injury
 Compensated for against Act done for
faith

22. Duties of agent
 Follow instruction
 Best use of abilities
 Not mix property
 Maintain accounts
 Payments of amounts
 Death or insanity of principal
 No appointment of sub agent
 Communicate with principal

23. Rights of principal
 Follow instruction
 Best use of abilities
 Not mix property
 Maintain accounts
 Payments of amounts
 Communicate with principal

24. Duties of principal
 Remuneration
 Lien
 Indemnified for consequences
 Retainer
 Stoppage of goods in transit
 Compensate for injury
 Compensated for against Act done in
good faith