CONTRACT OF AGENCY Agent and Principal u/s 182 ( Indian Contract Act) A person who has a capacity to contract

may enter into a contract with another Either by himself Or through another person( acting through agent) Job of a Agent To bring his principal into contractual relations with relation to third person Link between principal and third party Drops out when contract comes into force. No party to contract Essentials of agency: 1 Agreement between principal and agent u/s-184 2No consideration for creation of agency u/s-185

3 Intention of agent to act on behalf of principal Rules of Agency 1 whatever a person can do personally can be done through an agent only except personal things. Excpt: act of public office 2 Principal (of majority of age) can employ anybody as a agent 3 A Minor can be agent ( No contractual obligation) 4 Willingness to work as agent What are RIGHTS of an Agent 1 Right to receive Remuneration 2 Right of Retainer 3 Right of Lien 4 Right to be indemnified against consequences of lawful acts 5 Right to compensation 6 Right of stoppage of goods in transit

Remuneration -u/s 219 Agreed remuneration if otherwise decided. Should be resonable if not decided Only after completion of contract. Eg A property dealer of B. remuneration after sale of property. C client produced by A ready purchase. B refuses the terms. A not eligible for any remunaration. Gulity of loss of remunaration if Agent found responsible for misconduct to terms. Rate of property/terms of property/misrepresentation Right of Retainer u/s 217 An agent has got right to retain amount received on acc of principal in lieu of all expenses/advances incurred by him 3 Right of Lien

u/s In the absence of any contract to the contrary an agent can retain goods, paper other property of principal which could be of movable or immovable nature till disbursement of his dues by principal 4 Right to be indemnified against consequences of lawful acts Done by the agent within his authority. Eg. Agents consficated a car from third party for non payment on Principals direction. Indemnified for cost incurred. Eg. Principal employs Agent to beat C and assures of indemnity. C asks for damages from Agent. Agent liable to pay. KNOWN UNLAWFUL ACTS Right of stoppage of goods in transit When the goods are bought by Agent himself on behalf of principal for personal liability. He can stop goods in transit for the liability he has paid or going to pay. When personally liable to the principal for the price of goods sold to a buyer ( who became insolvent) The agent is unpaid seller by himself to the buyer here.

Classification of Agent A :On their extent of Authority 1 Special Agent : When an agent is appointed to a special task assignment or transaction in particular Eg To sell a house/ auction/ 2 General Agent: When appointed to to do acts connected to particular trade/business/employment. Manager of the firm is implied authority as a agent 3 Universal agent: Unlimited authority to act for principal and binding on principal to all legal/lawful/agreeable to law of land Types of Mercantile agents i. Factor: An agent entrusted with possesion of goods for the purpose of selling them. He has general LIEN on the goods of principal. He can sell, pledge, dispose goods , is apparent owner of goods, in consent of PRINCIPAL. The terms of sell binding on owner whether or whether not Principal authorised it. ii. Auctioneer:

An agent appointed by Principal to to sell his goods in public for reward as a comission Auctioneer Houses eg Sothbys, Ramchandran Can act on Knock price or reserve price to his advantage iii.Broker: An agent employed to sell or buy goods on behalf of another. Eg. Share broker. To bring contractual terms between a principal and third party. May not have physical possession of goods Cant act on his own name No right of lien Iv. Comission Agents. An agent to buy and sell goods or transact business for some other persons receiving for his labour and trouble gets commission Eg Goods Transport agents

NON MERCANTILE AGENTS Attorny, Solicitors, Insurance agents, clearing and forwarding (c&f) agents, wife etc.
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