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Shilpi Gupta
Agency
General It is not always possible for a person to do everything himself, hence it becomes necessary to delegate some of the acts to be performed by another person. Such other person is called an agent. Definitions of Agent and Principal II 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 represented, is called the principal" .85 The contract which creates the relationship of 'principal' and 'agent' is called an 'agency'. For example: X appoints Y to buy ten bags of wheat on his behalf, X is the principal, Y is the agent and the contract between the two is 'agency'.
By express agreement
An agency express agreement or authority arises when
authority is conferred on an agent either by written or spoken words. Case A appoints b to manage his business by a written and stamped deed and B accepted it. It is an agency created by an express agreement between A & B.
By Implied Agreement
Implied agency inferred from the conduct or relation of the
parties or the circumstances of the case. Case A lives in Kolkata. He owns a shop in jaipur and visit occasionally. The shop is managed by B. B is in the habit of buying goods from C in the name of A for the purpose of shop, and paying from them out of As funds with As knowledge. B has an implied authority from A to buy goods from C in the name of A for the purposes of the shop
By Ratification
Agency by ratification arises when some act is done by a
person on behalf of another without his authority and act is ratified or affirmed by the other and unauthorised act become authorised
By operating Law
Agency may also arise by operating of law. In such a case,
law presumes a person as an agent of another. For instance ever partner is an agent of the firm, for the purpose of the business of the firm
DUTIES OF AGENT
1. To carry out the work undertaken according to the directions given by the principal. To carry out the work with reasonable care, skill and diligence. To communicate with the principal in the case of difficulty. To pay sums received for the principal. To protect and preserve the interests of the principal in the case of his death or insolvency. 2. 3. 4. 5.
6.
7. 8.
RIGHTS OF AGENT
1.
Right of retainer. Right to receive remuneration. Right of lien. Right of indemnification. Right of compensation.
2. 3. 4. 5.
TERMINATION OF AGENCY
By act of the parties
Agreement
By operation of law
Performance of the contract Expiry of the time Death of either party