An agent acts on behalf of a principal under an agency contract. The essential elements of agency include an agreement between the principal and agent, where the agent acts in a representative capacity on behalf of the principal. An agent's duties are to follow the principal's instructions, act with skill and diligence, communicate issues to the principal, and not make secret profits. An agent has rights like remuneration, lien, and indemnity. The agency relationship can terminate by agreement, revocation, completion of the purpose, or death/insanity of the principal or agent.
The document discusses the key aspects of a contract of agency under Indian law. It defines principal and agent, and outlines their duties and rights. It explains the different ways an agency can be created and terminated. It also distinguishes between an agent and other related roles like servant, bailee, independent contractor, and sub-agent. Finally, it discusses when an agency becomes irrevocable, such as when the agent has an interest in the subject matter or has partially performed the agency.
An agent is a person employed to act on behalf of another person called the principal. Anyone of age and sound mind can appoint an agent, and anyone can be an agent regardless of age or mental capacity. There are two types of agents: sub-agents, who are appointed by other agents, and co-agents, who are appointed by the agent with the principal's authority to act on the principal's behalf. Agents have rights including the right to retain amounts owed by the principal, stop goods in transit if personally liable, claim agreed remuneration, indemnity from the principal, and lien over goods. Agents' duties include conducting business as directed, using reasonable care and skill, rendering accounts, communicating difficulties, not dealing
An agent is a person employed to act on behalf of another person called the principal. There are various ways an agency can be created, including express agreement, implied agreement, ratification, and by necessity. An agent has duties to conduct business with reasonable care and diligence according to the principal's instructions. An agent has rights like indemnification and retaining property until paid. A principal is bound by an agent's authorized acts but can also be liable for unauthorized acts under certain conditions. An agency terminates through completion, agreement, expiration, or other events.
The document outlines the law of agency in India, including definitions of agency, classifications of agents, rights and duties of principals and agents, creation and termination of agency relationships. It discusses the essential elements of an agency contract and covers implied and express authority, ratification, estoppel, and termination of agency by agreement, operation of law or acts of the parties.
This document provides an overview of contract of agency. It defines an agent and principal and discusses the essentials of a valid agency contract. It covers topics such as creation of agency through express, implied or ratified agreements. It describes different types of agents and their duties and rights. It also discusses the relationship between the principal and third parties, delegation of authority, and termination of agency. The document was submitted by 5 students to their professor at K.K. Parekh Institute of Management Studies in Amreli.
The document discusses agency, including:
1) The definition of an agent and principal according to Indian law.
2) The various modes of creating an agency relationship, including express, implied, ratification, estoppel, and necessity.
3) The differences and classifications of agents, including general vs special agents, and mercantile agents like brokers, factors, etc.
4) The rights and duties of both agents and principals.
The document discusses the key aspects of a contract of agency under Indian law. It defines principal and agent, and outlines their duties and rights. It explains the different ways an agency can be created and terminated. It also distinguishes between an agent and other related roles like servant, bailee, independent contractor, and sub-agent. Finally, it discusses when an agency becomes irrevocable, such as when the agent has an interest in the subject matter or has partially performed the agency.
An agent is a person employed to act on behalf of another person called the principal. Anyone of age and sound mind can appoint an agent, and anyone can be an agent regardless of age or mental capacity. There are two types of agents: sub-agents, who are appointed by other agents, and co-agents, who are appointed by the agent with the principal's authority to act on the principal's behalf. Agents have rights including the right to retain amounts owed by the principal, stop goods in transit if personally liable, claim agreed remuneration, indemnity from the principal, and lien over goods. Agents' duties include conducting business as directed, using reasonable care and skill, rendering accounts, communicating difficulties, not dealing
An agent is a person employed to act on behalf of another person called the principal. There are various ways an agency can be created, including express agreement, implied agreement, ratification, and by necessity. An agent has duties to conduct business with reasonable care and diligence according to the principal's instructions. An agent has rights like indemnification and retaining property until paid. A principal is bound by an agent's authorized acts but can also be liable for unauthorized acts under certain conditions. An agency terminates through completion, agreement, expiration, or other events.
The document outlines the law of agency in India, including definitions of agency, classifications of agents, rights and duties of principals and agents, creation and termination of agency relationships. It discusses the essential elements of an agency contract and covers implied and express authority, ratification, estoppel, and termination of agency by agreement, operation of law or acts of the parties.
This document provides an overview of contract of agency. It defines an agent and principal and discusses the essentials of a valid agency contract. It covers topics such as creation of agency through express, implied or ratified agreements. It describes different types of agents and their duties and rights. It also discusses the relationship between the principal and third parties, delegation of authority, and termination of agency. The document was submitted by 5 students to their professor at K.K. Parekh Institute of Management Studies in Amreli.
The document discusses agency, including:
1) The definition of an agent and principal according to Indian law.
2) The various modes of creating an agency relationship, including express, implied, ratification, estoppel, and necessity.
3) The differences and classifications of agents, including general vs special agents, and mercantile agents like brokers, factors, etc.
4) The rights and duties of both agents and principals.
The document summarizes key aspects of agency law, including:
1. It defines an agent and principal, and notes that an agency is the contract that creates their relationship.
2. It outlines essential elements of agency, including the need for agreement and the agent acting in a representative capacity.
3. It describes different types of agents based on authority (general, special, universal) and work performed (mercantile, non-mercantile).
4. It discusses the duties of agents to principals and the rights of principals regarding agents.
The document provides a high-level overview of important agency law concepts in under 3 sentences.
This document defines the roles of an agent and principal according to Indian contract law. It states that an agent acts on behalf of or represents a principal. The document then outlines the duties of both agents and principals, such as an agent's duty to follow the principal's directions and a principal's duty to indemnify the agent. It also classifies agents based on the extent of their authority or the nature of work performed. Finally, the document discusses the rights of both agents and principals in an agency relationship.
An agent is a person employed to act for or represent a principal in dealings with third parties. The principal is the person for whom the agent acts. Agency is the legal relationship between them. Anyone of sound mind who is legally an adult can be an agent. An agent has the authority and power to bind the principal through their acts. Agency can be created through agreement, necessity, holding out, or operation of law. The principal has rights over the agent, including the right to revoke the agent's authority or ratify their unauthorized acts. The agent has duties to the principal and rights such as retaining money owed or claiming indemnity.
An agent is a person employed to act for or represent a principal in dealings with third parties. The principal is the person for whom the agent acts. Agency is the legal relationship between them. Anyone of sound mind who is legally an adult can be an agent. An agent has the authority and power to bind the principal through their acts. Agency can be created through agreement, necessity, holding out, or operation of law. The principal has rights over the agent, including the right to revoke the agent's authority or ratify their unauthorized acts. The agent has duties to the principal and rights such as a right to compensation.
This document discusses the key aspects of a contract of agency under Indian law. It defines agency as a contract where one person employs another to act on their behalf or represent them in dealings with third parties.
It outlines the parties to an agency contract - the principal who employs the agent, and the agent who acts on the principal's behalf. It notes that consideration is not required to create an agency. Various modes of creating an agency are discussed, including express, implied, ratification, operation of law, estoppel and necessity.
The document also examines the extent of an agent's authority, their duties to conduct business diligently and account for it properly, and the principal's duties to indemnify the agent
This document discusses the key aspects of a contract of agency under Indian law. It defines agency as a contract where one person employs another to act on their behalf. It outlines the parties to an agency contract, being the principal and the agent. It discusses the various modes of creating an agency such as express, implied or by ratification. It elaborates on the duties and rights of both the principal and agent. It also covers the termination of an agency contract by operation of law or by the acts of the parties.
An agent is a person authorized to act on behalf of another person called the principal. The relationship between them is called agency. An agency can be created expressly through an agreement or impliedly through actions like ratification or holding out. As an agent, one has duties to follow the principal's instructions, conduct business with care, communicate properly, and not make secret profits. The principal has duties to pay the agent and not interfere without cause. An agency terminates through completion, death, lapse of time, or revocation except if the agency is coupled with an interest of the agent.
This document discusses the concept of a mercantile agent under Indian law. It defines a mercantile agent as an agent authorized by a principal to purchase and sell goods or raise money using the principal's goods as collateral. The document outlines the functions, types, relevant legal provisions, case laws, and comparisons with agency law in other jurisdictions like Kuwait regarding mercantile agents. It concludes with some suggested improvements to Indian law regarding agent liability, rights of gratuitous agents, and an agent's right to sue for accounts.
This document defines key concepts in agency law, including defining an agent and principal. It discusses how agency is created through express agreement, implied agreement, ratification, or operation of law. It also covers types of implied agency and different classifications of agents. The duties and rights of both agents and principals are outlined. Finally, it discusses how agency can be terminated and exceptions where the agency is irrevocable.
The document discusses the key aspects of the law of agency in India including:
1. It defines a contract of agency as one where a principal employs an agent to act on their behalf or represent them in dealing with third parties.
2. It outlines the parties to an agency contract - the principal and the agent. It also discusses who can be an agent and principal.
3. It discusses the various ways an agency can be created including express, implied, ratification, operation of law, estoppel, and by necessity.
4. It describes the duties and rights of both the principal and agent in an agency relationship.
5. It discusses how an agency can be terminated including by
Contract of agency, features of agency and termination agencyFAST NUCES
The presentation is abut the contract of agency. it contains the essentials features required for a agency. Moreover, it also includes the purpose of agency and kinds of agent. further, it is also providing termination of agency.
This document outlines the key aspects of a contract of agency between a principal and agent. It defines agency as a relationship where one person acts on behalf of another. It then discusses the parties to an agency contract, including who can be an agent and principal. It explains the different ways an agency can be created, such as express authority, implied authority, ratification, and operation of law. It also covers the duties and rights of both the agent and principal, and how an agency can be terminated.
This document discusses various aspects of agency law, including:
1) An agent can create a binding contractual relationship for the principal, and the principal can be vicariously liable for acts of the agent within the scope of employment. Different types of agents are discussed such as factors, brokers, and del credere agents.
2) Agency can be created expressly through an oral or written agreement, or implied through the conduct of the principal authorizing another to act as an agent. A principal can also ratify unauthorized acts of another and create an agency relationship retroactively.
3) Special types of agency relationships are discussed including directors as agents of a company according to corporate law, and partners being mutual agents for
An agency agreement is a legal contract creating a fiduciary relationship whereby the first party ("the principal") agrees that the actions of a second party ("the agent") binds the principal to later agreements made by the agent as if the principal had himself personally made the later agreements. The power of the agent to bind the principal is usually legally referred to as an authority. Agency created via an agreement may be a form of implied authority, such as when a person gives their credit card to a close relative, the cardholder may be required to pay for purchases made by the relative with their credit card.
Many states employ the equal dignity rule whereby the agency agreement must be in writing if the later agreement would also necessarily be written, such as a contract to buy thousands of dollars worth of goods.
An example of the existence of an agency agreement at issue in a 2006 court case arose when a tennis tournament sponsor sued Venus and Serena Williams for not participating. The sponsor argued that their father, Richard Williams, had committed to their participation in the tournament. The Williams sisters argued that their father did not have the authority to bind them to such an agreement. If their father did commit the sisters to play, the issue for the court to decide is whether a valid agency agreement existed between the Williams sisters and their father. If not, then they likely were not bound to his agreement under the law of agency.
Manufacturers and suppliers of goods frequently appoint agents to act on their behalf in promoting sales, both in the home country of the manufacturer as well as overseas. A formal agreement is usually signed setting out the commission the agent will receive, the territory, duration and other terms on which the principal and agent will do business together.
Within the European Union, there is legislation designed to give some protection to agents, in particular, the right to compensation in certain circumstances when an agency is terminated. The same applies to other parts of the world and in some countries, it is necessary for a foreign manufacturer to appoint as agent an individual or company that is a national of the country where the agency will operate.
An agent should be distinguished from a distributor – in commercial parlance, a distributor will buy stock from the supplier or principal and then sell it on to his customers at a markup, whereas an agent will find customers for the principal who then sells direct to the customers and pays commission to the agent.
1. A contract of agency allows one person (the principal) to employ another person (the agent) to act on their behalf or represent them in dealing with third parties, binding the principal by the agent's acts.
2. The key parties to a contract of agency are the principal, who is represented by the agent, and the agent, who acts on behalf of the principal. Consideration is not required to create an agency.
3. An agency can be created expressly, impliedly, by ratification, by operation of law, or through estoppel. The extent of an agent's authority depends on the scope delegated by the principal. An agent generally cannot delegate their authority to a sub-
This document provides an overview of agency law under the Indian Contract Act of 1872. It defines agency as a relationship where one party, the agent, acts on behalf of the other, the principal. The document outlines the essentials of a valid agency, including that the principal and agent must have contractual capacity. It discusses the different types of agents and how an agency can be created or terminated. The document also examines the rights and duties of the principal and agent toward each other, as well as situations where the agent may be personally liable, such as when the principal is undisclosed.
The document discusses agency and insurance law under Indian contract law. It defines key terms like principal, agent, insurer, and insured. For agency, it covers creation of agency through express, implied, and ratification agreements. It discusses the duties of agents and circumstances for terminating agency. For insurance, it defines insurance as a risk-sharing contract between an insurer and insured where the insurer agrees to pay a sum or indemnify losses in exchange for a premium. It outlines characteristics of insurance contracts like utmost good faith and indemnity.
The document discusses various topics related to contracts of agency and guarantee. It defines an agent as a person employed to do acts for another or represent another in dealings with third parties. The key parties in a contract of agency are the principal and agent. It outlines the duties and rights of both the principal and agent. It also discusses special contracts, classification of agents, and the duties of the principal towards the agent and third parties. The document defines contracts of indemnity and guarantee and compares the differences between the two. It concludes with explanations of lien, lienholder, and the different types of liens.
The document discusses various aspects of agency law in Sri Lanka. It defines agency as a relationship between two parties known as the agent and principal. The principal authorizes the agent to act on their behalf, such as entering contracts with third parties. There are different ways agency can be created, including actual authority given expressly or implicitly, apparent authority through representations to third parties, and agency of necessity in emergencies. The duties of agents and rights of principals are also outlined.
Genocide in International Criminal Law.pptxMasoudZamani13
Excited to share insights from my recent presentation on genocide! 💡 In light of ongoing debates, it's crucial to delve into the nuances of this grave crime.
The document summarizes key aspects of agency law, including:
1. It defines an agent and principal, and notes that an agency is the contract that creates their relationship.
2. It outlines essential elements of agency, including the need for agreement and the agent acting in a representative capacity.
3. It describes different types of agents based on authority (general, special, universal) and work performed (mercantile, non-mercantile).
4. It discusses the duties of agents to principals and the rights of principals regarding agents.
The document provides a high-level overview of important agency law concepts in under 3 sentences.
This document defines the roles of an agent and principal according to Indian contract law. It states that an agent acts on behalf of or represents a principal. The document then outlines the duties of both agents and principals, such as an agent's duty to follow the principal's directions and a principal's duty to indemnify the agent. It also classifies agents based on the extent of their authority or the nature of work performed. Finally, the document discusses the rights of both agents and principals in an agency relationship.
An agent is a person employed to act for or represent a principal in dealings with third parties. The principal is the person for whom the agent acts. Agency is the legal relationship between them. Anyone of sound mind who is legally an adult can be an agent. An agent has the authority and power to bind the principal through their acts. Agency can be created through agreement, necessity, holding out, or operation of law. The principal has rights over the agent, including the right to revoke the agent's authority or ratify their unauthorized acts. The agent has duties to the principal and rights such as retaining money owed or claiming indemnity.
An agent is a person employed to act for or represent a principal in dealings with third parties. The principal is the person for whom the agent acts. Agency is the legal relationship between them. Anyone of sound mind who is legally an adult can be an agent. An agent has the authority and power to bind the principal through their acts. Agency can be created through agreement, necessity, holding out, or operation of law. The principal has rights over the agent, including the right to revoke the agent's authority or ratify their unauthorized acts. The agent has duties to the principal and rights such as a right to compensation.
This document discusses the key aspects of a contract of agency under Indian law. It defines agency as a contract where one person employs another to act on their behalf or represent them in dealings with third parties.
It outlines the parties to an agency contract - the principal who employs the agent, and the agent who acts on the principal's behalf. It notes that consideration is not required to create an agency. Various modes of creating an agency are discussed, including express, implied, ratification, operation of law, estoppel and necessity.
The document also examines the extent of an agent's authority, their duties to conduct business diligently and account for it properly, and the principal's duties to indemnify the agent
This document discusses the key aspects of a contract of agency under Indian law. It defines agency as a contract where one person employs another to act on their behalf. It outlines the parties to an agency contract, being the principal and the agent. It discusses the various modes of creating an agency such as express, implied or by ratification. It elaborates on the duties and rights of both the principal and agent. It also covers the termination of an agency contract by operation of law or by the acts of the parties.
An agent is a person authorized to act on behalf of another person called the principal. The relationship between them is called agency. An agency can be created expressly through an agreement or impliedly through actions like ratification or holding out. As an agent, one has duties to follow the principal's instructions, conduct business with care, communicate properly, and not make secret profits. The principal has duties to pay the agent and not interfere without cause. An agency terminates through completion, death, lapse of time, or revocation except if the agency is coupled with an interest of the agent.
This document discusses the concept of a mercantile agent under Indian law. It defines a mercantile agent as an agent authorized by a principal to purchase and sell goods or raise money using the principal's goods as collateral. The document outlines the functions, types, relevant legal provisions, case laws, and comparisons with agency law in other jurisdictions like Kuwait regarding mercantile agents. It concludes with some suggested improvements to Indian law regarding agent liability, rights of gratuitous agents, and an agent's right to sue for accounts.
This document defines key concepts in agency law, including defining an agent and principal. It discusses how agency is created through express agreement, implied agreement, ratification, or operation of law. It also covers types of implied agency and different classifications of agents. The duties and rights of both agents and principals are outlined. Finally, it discusses how agency can be terminated and exceptions where the agency is irrevocable.
The document discusses the key aspects of the law of agency in India including:
1. It defines a contract of agency as one where a principal employs an agent to act on their behalf or represent them in dealing with third parties.
2. It outlines the parties to an agency contract - the principal and the agent. It also discusses who can be an agent and principal.
3. It discusses the various ways an agency can be created including express, implied, ratification, operation of law, estoppel, and by necessity.
4. It describes the duties and rights of both the principal and agent in an agency relationship.
5. It discusses how an agency can be terminated including by
Contract of agency, features of agency and termination agencyFAST NUCES
The presentation is abut the contract of agency. it contains the essentials features required for a agency. Moreover, it also includes the purpose of agency and kinds of agent. further, it is also providing termination of agency.
This document outlines the key aspects of a contract of agency between a principal and agent. It defines agency as a relationship where one person acts on behalf of another. It then discusses the parties to an agency contract, including who can be an agent and principal. It explains the different ways an agency can be created, such as express authority, implied authority, ratification, and operation of law. It also covers the duties and rights of both the agent and principal, and how an agency can be terminated.
This document discusses various aspects of agency law, including:
1) An agent can create a binding contractual relationship for the principal, and the principal can be vicariously liable for acts of the agent within the scope of employment. Different types of agents are discussed such as factors, brokers, and del credere agents.
2) Agency can be created expressly through an oral or written agreement, or implied through the conduct of the principal authorizing another to act as an agent. A principal can also ratify unauthorized acts of another and create an agency relationship retroactively.
3) Special types of agency relationships are discussed including directors as agents of a company according to corporate law, and partners being mutual agents for
An agency agreement is a legal contract creating a fiduciary relationship whereby the first party ("the principal") agrees that the actions of a second party ("the agent") binds the principal to later agreements made by the agent as if the principal had himself personally made the later agreements. The power of the agent to bind the principal is usually legally referred to as an authority. Agency created via an agreement may be a form of implied authority, such as when a person gives their credit card to a close relative, the cardholder may be required to pay for purchases made by the relative with their credit card.
Many states employ the equal dignity rule whereby the agency agreement must be in writing if the later agreement would also necessarily be written, such as a contract to buy thousands of dollars worth of goods.
An example of the existence of an agency agreement at issue in a 2006 court case arose when a tennis tournament sponsor sued Venus and Serena Williams for not participating. The sponsor argued that their father, Richard Williams, had committed to their participation in the tournament. The Williams sisters argued that their father did not have the authority to bind them to such an agreement. If their father did commit the sisters to play, the issue for the court to decide is whether a valid agency agreement existed between the Williams sisters and their father. If not, then they likely were not bound to his agreement under the law of agency.
Manufacturers and suppliers of goods frequently appoint agents to act on their behalf in promoting sales, both in the home country of the manufacturer as well as overseas. A formal agreement is usually signed setting out the commission the agent will receive, the territory, duration and other terms on which the principal and agent will do business together.
Within the European Union, there is legislation designed to give some protection to agents, in particular, the right to compensation in certain circumstances when an agency is terminated. The same applies to other parts of the world and in some countries, it is necessary for a foreign manufacturer to appoint as agent an individual or company that is a national of the country where the agency will operate.
An agent should be distinguished from a distributor – in commercial parlance, a distributor will buy stock from the supplier or principal and then sell it on to his customers at a markup, whereas an agent will find customers for the principal who then sells direct to the customers and pays commission to the agent.
1. A contract of agency allows one person (the principal) to employ another person (the agent) to act on their behalf or represent them in dealing with third parties, binding the principal by the agent's acts.
2. The key parties to a contract of agency are the principal, who is represented by the agent, and the agent, who acts on behalf of the principal. Consideration is not required to create an agency.
3. An agency can be created expressly, impliedly, by ratification, by operation of law, or through estoppel. The extent of an agent's authority depends on the scope delegated by the principal. An agent generally cannot delegate their authority to a sub-
This document provides an overview of agency law under the Indian Contract Act of 1872. It defines agency as a relationship where one party, the agent, acts on behalf of the other, the principal. The document outlines the essentials of a valid agency, including that the principal and agent must have contractual capacity. It discusses the different types of agents and how an agency can be created or terminated. The document also examines the rights and duties of the principal and agent toward each other, as well as situations where the agent may be personally liable, such as when the principal is undisclosed.
The document discusses agency and insurance law under Indian contract law. It defines key terms like principal, agent, insurer, and insured. For agency, it covers creation of agency through express, implied, and ratification agreements. It discusses the duties of agents and circumstances for terminating agency. For insurance, it defines insurance as a risk-sharing contract between an insurer and insured where the insurer agrees to pay a sum or indemnify losses in exchange for a premium. It outlines characteristics of insurance contracts like utmost good faith and indemnity.
The document discusses various topics related to contracts of agency and guarantee. It defines an agent as a person employed to do acts for another or represent another in dealings with third parties. The key parties in a contract of agency are the principal and agent. It outlines the duties and rights of both the principal and agent. It also discusses special contracts, classification of agents, and the duties of the principal towards the agent and third parties. The document defines contracts of indemnity and guarantee and compares the differences between the two. It concludes with explanations of lien, lienholder, and the different types of liens.
The document discusses various aspects of agency law in Sri Lanka. It defines agency as a relationship between two parties known as the agent and principal. The principal authorizes the agent to act on their behalf, such as entering contracts with third parties. There are different ways agency can be created, including actual authority given expressly or implicitly, apparent authority through representations to third parties, and agency of necessity in emergencies. The duties of agents and rights of principals are also outlined.
Semelhante a contract of agency in business legislation for managers (20)
Genocide in International Criminal Law.pptxMasoudZamani13
Excited to share insights from my recent presentation on genocide! 💡 In light of ongoing debates, it's crucial to delve into the nuances of this grave crime.
Corporate Governance : Scope and Legal Frameworkdevaki57
CORPORATE GOVERNANCE
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Business law for the students of undergraduate level. The presentation contains the summary of all the chapters under the syllabus of State University, Contract Act, Sale of Goods Act, Negotiable Instrument Act, Partnership Act, Limited Liability Act, Consumer Protection Act.
The Future of Criminal Defense Lawyer in India.pdfveteranlegal
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The immediate step is an intelligent choice; don’t procrastinate. In the aftermath of the crash, taking care of yourself and taking quick steps can help you protect yourself from significant injuries. Make sure that you have collected the essential data and information.
2. AGENT :-
An agent is a person employed to do any act for another or to represent another in
dealing with third parties.
PRINCIPLE :-
The person for whom such act is done or who is so represented is called the
principal.
AGENCY :-
The contract which creates the relationship between the principal and agent.
3. Essential and legal rules :-
1. There should be an agreement – Express or Implied
2. The agent must act in the representative capacity
3. The principal and agent must be competent to contract
4. The consideration is not necessary
4. DIFFERENCE BETWEEN AGENT, SERVANT AND
INDEPENDENT CONTRACTOR :-
Contractor: He is employed to
perform any specific work but
manner and means of performance
are entirely left to his discretion. A
contractor does not represents his
employer to any third party.
5. WHO MAY EMPLOY AS AN AGENT:- No person can employ an agent if he does not possess
capacity to contract. So a minor or person of unsound mind cannot become the agent under section
183 of the Indian Contract Act.
WHO MAY BE AN AGENT:- According to section 184 of the Act, any person can be appointed
as an agent but a person who is not of age of majority and of sound mind cannot be made personally
liable for the act done on behalf of the principal. Minor can create contractual relation but a minor
agent cannot be made personally liable to the principal for the misconduct like an adult agent.
CONSIDERATION:- No consideration is required for the creation of an Agency under section
185 of the Act.
6.
7. CREATION OF AGENCY
1. By Express Agreement
A contract of agency can be made orally or in writing (Sec.186). Example of a
written contract of agency is the Power of Attorney that gives a right to an agency to
act on behalf of his principal in accordance with the terms and conditions therein.
2. By Implied Agreement
Implied agency arises from the conduct, the situation or relationship of parties.
8. Implied agency includes:
a) Agency by Estoppel (Section 237) :- where a person by his words or conduct has
wilfully led another to believe that certain set of circumstances or facts exists and the
other person has acted on the behalf.
b) Agency by Holding Out :- It refers to an act or omission of the act which led others
to believe that the person is a partner of the company and has authority and hence in
this faith they made an agreement while in actual he does not have.
c) Agency of Necessity (Sections 188 and 189):- In certain circumstances, a person
who has been entrusted with another’s property may have to incur unauthorized
expenses to protect or preserve it. This is called an agency of necessity.
9. 3. Agency by Ratification (Sections 169-200)
A person may act as an agent on behalf of another without his knowledge or
consent, then the principal is not bound by the contract with the agent in
respect of such authority. But the principal can ratify the agent’s transaction
and accept liability. In this way, an agency by ratification arises.
4. Agency by operation of law
Sometimes an agency arises by operation of law.
For ex. When a company is formed, its promoters are its agents by operation
of law.
11. GENERALAGENT : A general agent is one who has authority to do all acts connected with a
particular trade, business or employment.
PARTICULAR AGENT : A particular or special agent is one who is appointed to perform a particular
act or to represent his principal in some particular transaction.
UNIVERSALAGENT : A universal agent is one whose authority to act for the principal is
unlimited.
MERCANTILE AGENT : An agent who has full authority to perform all functions relating to the
business on behalf of his principal.
NON-MERCANTILE AGENTS : These include attorneys, solicitors, insurance agents, clearing
and forwarding agents and wife, etc
12. Mercantile Agent includes:
1. FACTOR:-A factor is a mercantile agent entrusted with the possession of goods for the purpose of selling them. He is
entitled to sell the goods in his own name. A factor has a right to retain the goods for a general balance of accounts.
2. BROKER:- He merely brings two parties together and if the deal is materialized he becomes entitled to the commission.
3. COMMISSION AGENT:- A commission agent is person who purchases and sells goods in the market on behalf of his
employer on the best possible terms and who gets commission for his labor.
4. AUCTIONEER :- An auctioneer is an agent whose business is to sell goods or other property by public auction, i.e., by
open sale.
5. DEL CREDERE AGENT:-A del credere agent is one who, in consideration of an extra commission, guarantees his
principal that the persons with whom he enters into contract on behalf of the principal, shall perform their obligations.
He occupies the position of both a guarantor and an agent.
13. RIGHTS OF AN AGENT
1. Right to remuneration (Sec.219) – an agent is entitled to get an agreed remuneration as per
the contract. If nothing is mentioned in the contract about remuneration, then he is entitled to a
reasonable remuneration. But an agent is not entitled for any remuneration if he is guilty of
misconduct in the business of agency (Sec.220).
2. Right of retainer (Sec.217) – an agent has the right to hold his principal’s money till the
time his claims, if any, of remuneration or advances are made or expenses occurred during
his ordinary course of business as agency are paid.
3. Right of lien (Sec.221) – an agent has the right to hold back or retain goods or other property
of the principal received by him, till the time his dues or other payments are made.
14. 4. Right to indemnity (Sec.222) – an agent has the right to indemnity extending to all expenses and
losses incurred while conducting his course of business as agency.
5. Right to compensation (Sec.225) – an agent has the right to be compensated for any injury
suffered by him due to the negligence of the principal or lack of skill.
6. Right of stoppage in transit – where the agent has bought goods for his principal by incurring a
personal liability, he has a right of stoppage in transit against the principal, in respect of the money
he has paid or is liable to pay. This right of the agent is similar to that of the unpaid seller.
15. DUTIES OF AN AGENT
1. Agent's duty in conducting principal's business (Sec 211): An agent is bound to conduct the
business of his principal according to the directions given by the principal, or, in the absence of
any such directions, according to the custom which prevails in doing business of the same kind at
the place where the agent conducts such business.
2. Skill and diligence required from agent (Sec 212): An agent is bound to conduct the
business of the agency with as much skill as is generally possessed by persons engaged in similar
business, unless the principal has notice of his want of skill.
3. Duty to render proper accounts (Sec 213): An agent is bound to render proper accounts to
his principal on demand.
4. Duty to communicate with principal in case of difficulty (Sec 214): It is the duty of an
agent, in cases of difficulty, to use all reasonable diligence in communicating with his principal,
and in seeking to obtain his instructions.
16. 5. Not to deal on his own Account (Sec. 215): If an agent deals on his own account in the business
of the agency, without first obtaining the consent of his principal and acquainting him with all
material circumstances which have come to his own knowledge on the subject, the principal may
repudiate the transaction.
6. Not to make Secret Profits (Sec 216): An Agent, without the knowledge of his principal, should
not deal in the business of agency on his own to make secret profit.
7. Duty to pay sums received for principal (Sec 218): An agent is bound to pay to his principal all
sums received on his account.
8. Not to Disclose Secret: It is duty of an agent to maintain secrecy of the business of agency and
should not reveal the confidential matters.
9. Protect and Preserve the interests of the Principal in case of death or insolvency(Sec 209):
When an agency is terminated by the principal dying or becoming of unsound mind, the agent is
bound to take on behalf of the representatives of his late principal, all reasonable steps for the
protection and preservation of the interests entrusted to him.
10. Not to delegate authority (Sec 190): An agent must not, depute another person to do what he
has himself undertaken to do.
17. RIGHTS OF PRINCIPAL
1. Recover damages if agent disregards directions
2. Obtain accounts from agents
3. Recover money collected on behalf of principal
4. Obtain details of secret profit made by agent
5. Forfeit remuneration of agent if he misconducts the business
18. DUTIES OF PRINCIPAL
1. Pay remuneration to agent as agreed
2. Indemnify agent for lawful acts done by him
3. Indemnify agent for all the acts done by him in good faith
4. Indemnify agent if he suffers loss
19.
20. By the act of the parties :–
i) By agreement - The Contract of Agency can be terminated at any time by
mutual agreement between the principal and agent
ii) By revocation of the principal (Sec. 201) - The Principal revoke agency at any
time by giving notice to the agent
iii) By Renunciation or revocation of an agent (Sec 206) - Renunciation which
means withdrawing from responsibility as Agent. Like Principal, Agent can also
renounce the agency. The agent must give to his Principal reasonable notice of
renunciation. Otherwise, he will be liable to make good for the damage caused to the
principal for want of such notice.
21. By operation of law :-
i) By the performance or completion of agency (Sec. 201) - Agency can
become to an end after the completion of work for which the agency is created.
ii) By expiry of the time - Agency can also be terminated by the expiry of time.
if the agency is created for the specific period, it is terminated after the expiry of the
time.
iii) Death or insanity of principal or agent (Sec. 209) - An agent, duty to
terminate the contract of agency on the death of the principal. In other words, Agency
comes to an end on the death or insanity of the principal or agent.
iv) Insolvency of principal (Sec. 201) – An insolvent or bankrupt is a person
who is unable to run the business due to Excess of liabilities over assets. In this way,
if the principal becomes an insolvent agency can be terminated.
22. v) Destruction of the subject matter - If this subject matter of the agency is destroyed
agency comes to an end.
vi) Principal becoming an alien enemy - If the Principal becomes an alien enemy the
contract of agency comes to an end.
vii) Dissolution of company or firm - A Firm or company may be regarded as a Principal
in the contract of Agency. If the company or firm is dissolved the agency comes to an end.
viii) Termination of sub-agent’s authority (Sec. 210) – The termination of an agent’s
authority puts an end to the sub-agent’s authority.