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.

1. CONTRACT OF AGENCY

2. CONTRACT OF AGENCY
AGENT AND PRINCIPAL
An Agent is a person employed to do any act for
another or to represent another in dealings with third
persons. The person for whom such act is done, or who
is do represented is called the Principal”(Sec 182).
The person who acts on behalf of another is called an
agent. The person who authorizes another to act is
called a Principal.
The Contract which creates the relationship of
principal and agent is called an agency.

3. The agent is authorize to create a contract between his
principal and a third party. After entering into a contract,
the agent drops out and ceases to be a party to the
contract and the contract binds the principal and third
party.
EXAMPLE:
A appoints B to buy 10 bags of sugar on his behalf. A is
the principal and B is the agent and the contract between
the two is agency.

4. ESSENTIALS OF AGENCY
1. AGREEMENT.
The relationship of agency is the result of an agreement
between the principal and the agent. It may be express or
implied from the conduct of the parties.
2.WHO CAN BE PRINCIPAL.
Any person who is of the age of majority according to law to
which he is subject and who is of sound mind, may employ
and agent (Sec 183).
3.WHO CAN BE AN AGENT.
Any person may be an agent. It means a minor or a person of
unsound mind can be appointed as an agent . A minor as
agent can bind the principal to third parties. But a minor is not
himself liable to his principal. (Sec 184).

5. 4. CONSIDERATION NOT NECESSARY.
To create an agency the consideration is not necessary. It
may or may not exist agency. The fact that principal has
agreed to be represented by the agent is consideration
for principal to support the contract. (Sec 185).
5. INTENTION.
The agent must have intention to act on behalf of the
principal. When the agent enters into a contract for
himself , then the principal will not be liable. The
principal shall be liable only when agent contracts with
the intention to act on behalf of principal.

6. PURPOSE OF AGENCY
An agency is created to perform any act which the
principal himself can lawfully do.The object of agency
should not be criminal and against public policy.
GENERAL RULES OF AGENCY.
1.Whatever a person competent to contract can do
himself, he can do through an agent, except for acts
involving personal skills for example Painting.
2.The act of the agent are the acts of the principal. It
means he who acts through an agent acts himself.

7. KINDS OF AGENT
1. GENERAL AGENT.
A general agent is appointed to do all acts in connection with
a particular business.
Example:
A person is appointed as general manager is a general agent.
He can do any lawful acts regarding that business.
2. SPECIAL AGENT.
A special agent is appointed to some particular act in a
particular transaction.
Example:
A person is appointed to purchase a particular house. He has
authority only to do that particular act. His authority comes to
an end when the act is performed by him.

8. 3. UNIVERSAL AGENT.
A universal agent is the person whose authority is unlimited.
He enjoys powers to transact every kind of business on behalf
of his principal. A universal agent is authorized by the principal
to do all acts that can be delegated to him.
4. MERCANTILE AGENT.
A Mercantile agent is the person who has authority to sell or
buy goods or raise money on the security of goods. He is
generally appointed by a manufacturer or seller to assist in
the sale of goods. He does not take title to the goods. He
assist in the transfer of title from a seller to a buyer.

9. 5. FACTOR
A factor is an agent to whom goods are provided for sale.
He usually sells in his own name without disclosing to the
principal. He may sell on credit. He can also receive
payment and issue valid receipts. He is also entitled to
pledge the goods in his possession. He has also general
lien on the goods.
6. COMMISSION AGENT.
A commission agent buys or sells goods for his principal
on the best possible terms in his own name. He receives
only commission for his services. He may or may not
have possession goods.

11. TERMINATION OF AGENCY
1. AGREEMENT.
An agency can be terminated at any time by mutual
agreement between the principal and agent. Therefore
the authority of an agent terminates, when the principal
and the agent agree to terminate it (Sec 201).
Example
P employs A as his agent for 5 months. P and A with the
mutual consent can terminate the agency before the
expiry of 5 months.

12. 2. Revocation by the Principal.
The principal can revoke the authority of the agent at any
time before the agent has exercised his authority. In
Continuous agency, the principal can revoke it for future.
It cannot be revoked with regard to acts already done by
the agent.
Example:
P employs A to let his house. Afterward P lets itself . This
is a revocation of A’s authority .

13. 3. REVOCATIONJ BY AGENT.
An agency can be terminated by the agent because a
person cannot be compelled to work as an agent. But the
agent must give a reasonable notice of revocation to the
principal, otherwise he will be liable to compensate the
principal for any loss resulting thereby (Sec 201).
Example.
A is appointed as an agent of P for 1 year . After 6 months
A can terminate the agency by giving a reasonable notice
to P.

14. 4. COMPLETION OF BUSINESS.
An agency comes to end automatically when the business of
agency is completed. When an agency is for sale of particular
property, agency terminates on the completion of the sale.
(Sec 201).
Example.
P appoints A as his agent to sell his house. A sells the house,
the agency is terminated.
5. EXPIRY OFTIME.
If the agent is appointed for a fixed period, the agency comes
to an end on the expiry of fixed period, even though the
business of agency may not have been completed.

15. Example.
A is appointed as an agent for 1 year by P. An agency
terminates after the expiry of 1 year.
6. DEATH OFTHE PRINCIPAL OR AGENT.
An agency terminates automatically on the death of the
principal or the agent. On the death of the principal or
agent the agency is automatically terminated because a
person cannot act on behalf of non existent person (Sec
201).
Example.
P appoints as his agent for 1 year by P. An agency
terminates after the expiry of 1 year.

16. 7. INSOVENCY OFTHE PRINCIPAL.
An agency is also terminated by the insolvency of the
principal. But since an agent is merely connecting link
with the third parties, his insolvency may not terminate
the agency is some cases. (Sec 201)
EXAMPLE.
P appoints A as an agent for 2 years. P becomes insolvent
after 6 months.The agency comes to end.

17. Thank you
Prepared by:
Rahat Himmat Ali
Muhammad Bilal