What is an "Agency"? Kinds of Agents, Creation and termination of Agency

Topics: Agency as per Indian contract Act 1872 | Contract of Agency | Principal and Agent | Kinds of Agents | Creation and Termination of Agency | how is it created and terminated | Rights and Duties of an Agent |

In this chapter, the students will come to know

1. What is a contract of agency-agent-principal?
2. Requirement of a valid agency contract.
3. Difference between an agent, a sub-agent and a substituted agent.
4. Types of agents.
5. Mode of creation of an agency.
6. Rights and duties of an agent and a principal.
7. Termination of an agency.

AGENCY

            The relationship between principal and agent is known as agency.

            According to Section [182] of Indian Contract Act 1872,

            "An agent is a person implied to do any act for another or to represent another in dealings with third person.  The person for whom such act is done, or who is represented is called principal."

            The relationship between principal and agent is known as Agency.

            There is a difference between agent and servant.

            No consideration is required in contact of agency.

Kinds of Agent :-

(i)         General Agent (Time Duration)

(ii)        Specific Agent (Specific Purpose)

(iii)       Universal Agent (Limited Authority)

Creation of Agency :-

(i)         Express Agreement

(ii)        Implied Agreement

(iii)       By Estoppel. ( A loss incrurred due to false representation)

When a person by his words or conduct has willingly led another to believe that certain set of circumstances or facts exists, and that another person has acted on that belief, he is estopped from be denying the truth.

(iv)       Agency by ratification.

Rights and duties of agents :-

(i)         Duty to follow principal's direction.

(ii)        Duty to carry out the work with reasonable skill.

(iii)       Duty to render accounts

(iv)       Duty to communicate. [Section-214]

(v)        Duty not to deal on his own account. [Section-215]

(vi)       Duty not to make any profit out of his agency except his remuneration.

(vii)      Duty on termination of agency by principal's death [Section-209]

(viii)     Duty not to delegate authority under [Section 190] He can delegate the authority to the third party.

"NO ONE CAN TRANSFER BETTER TITLE THAN HIMSELF"

Transfer of Property Act | Sale of Goods Act 1930 | "Nemo dat quod non habet" | No one can transfer a better title 

"NO ONE CAN TRANSFER BETTER TITLE THAN HIMSELF"

     The term  "Nemo dat quod non habet" refers to No one can transfer a better title in property than he himself has. It means Sales without title is not possible.  Sale of goods act describes rules regarding transfer of property and ownership.  Sometimes goods are transferred by none owner.  The general rule is no one can pass better title than himself.

Transfer of Ownership or Title (Sec 27 – 30):

Where goods are sold by a person who is not the owner thereof and who does not sell them under the authority or with the consent of the owner, the buyer acquires no better title than the seller had (Sec 27). As a general rule, no one can sell the goods and give a good title thereof unless he is the owner thereof. This general rule is expressed by the maxim: “Nemo dat quod non habet” which means “no one can give that which he possess not”. The seller cannot give to the buyer of the goods a better title to the goods than he himself has.

Example:

Mr. X sells goods to Mr.Y acquired by theft, where Mr. Z is the real owner of the goods. He later finds goods in possession of Mr. Y. Now Mr. Y has no title to the goods as Mr. X was not the owner and had no title to sell the goods. Therefore, Mr. Y  will have to return the goods to Mr. Z who is the real owner.

In the following instances the buyer does not obtain a better title:

1) Person who has bought the goods under hire purchase agreement sells them;

2) In an auction sale if stolen goods are sold, neither the auctioneer nor the buyer has knowledge that the goods are stolen.

Exception to the rule  No one can transfer a better title in property than he himself has ("Nemo dat quod non habet")         

 This rule protects the owner. However this rule has certain exception.

(I)        ESTOPPEL :- In case of estoppel the title of goods is transferred even without ownership.

(II)       SALE BY MERCHANTILE AGENT :- An agent can paas the title or transfer the goods even though he is not true owner.

(III)     SALE BY ONE OF THE JOINT OWNER :- In case of joint ownership if the goods which cannot be separated, may be transferred by one of the joint owner.

(IV)     SALE UNDER AVOIDABLE CONTRACT :- Under section-29 A person who obtains the possession of any goods under a voidable contract, and before the contract has been cancelled, sale this goods, ownership is transferred with a good title.

(V)       SALE BY SELLER IN POSSESSION AFTER SALE :- The buyer after purchasing the goods may leave them with the seller, if the seller sells these goods to someone other, the title of goods is transferred.  The later buyer becomes as obtains a good title.

(VI)     SALE BY AN UNPAID SELLER :- Under [Section – 54(3)]  Where an unpaid seller who has exercised his right of lien or stoppage in transit re- sells the goods, the buyer acquires a good title thereto as against the original buyer, notwithstanding that no notice of the re- sale has been given to the original buyer.

(VII)    SALE BY A FINDER OF GOODS: When thing which is commonly the subject of sale is lost, if the owner cannot with reasonable diligence be found, or if he refuses upon demand, to pay the lawful charges of the finder, the finder may sell it -
(1) when the thing is in danger of perishing or of losing the greater part of its value, or
(2) when the lawful charges of the finder, in respect of the thing found, amount to two-thirds of its value.
(VIII)  SALE BY THE OFFICIAL RECIEVER :  In the event of insolvency of either the seller or the buyer, the question whether the goods can be taken over by the Official Receiver or Assignee, will depend on whether the property in goods is with the party who has become insolvent.

Sale by Auction

AUCTION SALE

            In auction sale an invitation is given for bid, bids are made by potential buyers.  The highest bid is generally the selling price, however the seller is not bound to sell his goods on the highest bid.  But it is custom to do so, setter failure of doing so may break the reputation of the firm or seller.

            Section 164 of contract of sale of goods act lays down the following rules regarding auction sale :-

(I)        Goods are kept in lots, each lot is treated as subject to separate contract.

(II)       Its completion is made by fall of HAMMER and using some traditional words like one, two, three sold etc.

(III)     It is an invitation to offer and not an offer.

(IV)     Auction sale is notified prior to the potential buyer in respect of potential buyer, place, base price and time of auction.

                        It should be noted that the base price, or (reserved price) is the price which is the lowest bid.

Who is an Unpaid Seller and what are the RIGHTS OF UNPAID SELLER

UNPAID SELLER

            Unpaid seller is a person who has not received the payment or consideration.  A seller of goods is supposed to be an unpaid seller when :-

(a)        The whole price of consideration has not been paid.

(b)        A bill of exchange or other regotiable instrument has been received as a conditional point and it has been dishonoured.

RIGHTS OF UNPAID SELLER

            The rights of unpaid seller can be divided in two parts :-

(a)        Rights against the goods.

(b)        Rights against the buyer.       

(a)        RIGHT AGAINST THE GOODS :-

            (i)         Rights of lien

(ii)        Right of stoppage in transit

(iii)       Right of Resale

(b)        RIGHT AGAINST THE BUYER :-

(i)         Rights to sue for price, when property has been passed.       

(ii)        When property has not passed :-

(i)         Sue for price, when price payable on a certain day.              

(ii)        Sue for damage due to non-transfer of goods or due to non-payment

(iii)             Rights of Interest.

Google Adsense: Dark Aspect

Google Adsense: Dark Aspect

The article may seems to be surprising for you but lets look some facts behind Google adsense programs or other PPC ad networks.

Presently Google Adsense has the monopoly over textual ads over internet. Google Adsense Offers a contextual advertising solution to web publishers Delivers text-based GoogleAdWords ads that are relevant to site content pages. Google adsense is an online Pay per click program where site owners can earn cool cash by publishing adverts on their site. No doubt about, Google adsense program has made some people reach over the years but today I want to talk about the bad side of google adsense.

Google Adsense Myths Every Blogspot Bloggers Needs to Know

There are a number of myths about Google Adsense which can lead new bloggers in particular into believing that they need only slap a few Google Ad units on their blog and they will become instant millionaires. The reality can be a lot different especially when you consider that 95% of all blogs receive less than 100 visitors per day. Adding Google Adsense to your blog can generate some income but there is a need to be realistic. Here are 6 myths about Google Adsense that every blogger needs to know:

1. Term and condition of Google ads: as stated in their terms and condition, publishers are not allowed to publish any content related to violence, hacking, porn and others, this only, restricts publishers on posting simply because they want to comply with adsense TOS, what do you think about it?
2.  Google Adsense discourages direct adverts: My second observation is that: having a lot of adsense displaying on your site discourages direct advert i.e people contacting you to place advert on your site.
3.  Adsense Requires alot of traffic, if not adsense is not for you: I was privileged to speak with many bloggers using adsense on their site, I later found out that  majority of them are not making good money with adsense, but yet they still stick with adsense, is that not wastage of time?  You need to work on your traffic before talking about making money with adsense.
4.  Adsense Policy to Account Disable: This is the most painful aspect of Google adsense, at time you found yourself to be complying to all google TOS, but suddenly your account got suspended for a reason not given, "We are sorry, we are limited to the information we can give to you on your account that was suspended" isn't that crazy.

As with google adsense program, this program also have certain rules, which are the basic rules for participating for any real online monetization tools. Some of the rules are

1.    You site/blog must be functioning and have enough contents
2. You must be the real owner of that site (if you have created any blog on your own, you are obviously the real owner)
3. Chitika accepts application from only those website/blog in which contents are written in english and they dont monetize non-English websites right now.
4.   You site do not have objectional and explict contents,i.e. nudity, profanity, contents who promote violence, discrimination etc. 
5. Just like google adsense program program policy you cant use chitika tags on torrent or anyother file sharing website
6. Lastly but more importantly you cant click on your own ads and also tell friends or family or visitors to click on your ads. i.e. dont try to earn money online via deception because the platform providers are more intelligent than you and can track your clicks and and any clicks that are invalid (not real)

My dear readers, my point is that, you need to look for another alternative to google adsense program and the best way is to get your site ready for direct adverts. I know what might be running in some people's heart is that my adsense account has been disabled, but that is not through, it is still active and live on my blog.

Google claims that Google AdSense provides a free, flexible way to earn money from your websites, mobile sites, and site search results with relevant and engaging ads, but reality is something different.

Current article is a personal observation though, you comments are welcomed