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
- What is a contract of agency-agent-principal?
- Requirement of a valid agency contract.
- Difference between an agent, a sub-agent and a substituted agent.
- Types of agents.
- Mode of creation of an agency.
- Rights and duties of an agent and a principal.
- 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.
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