Professional Documents
Culture Documents
PRINCIPAL
A person for whom the above act is done or who is so represented is called
.the ‘PRINCIPAL’
4- 1
AGGREMENT B/W PRINCIPAL AND AGENT-:
Agency depends on agreement but not
necessarily on contract. Any person can become
an agent b/w a principal and the third person.
4- 2
There are two important rules of agency:
4- 3
Acc. To sec 183 of ICA - Any person who is of age of majority
according to law to which is a subject, and who is of sound mind
may employ an agent.
4- 4
An agent is employed to bring the principal into the legal relations
with the third persons or to represent him in dealings with third
persons.
A servant does not ordinarily create legal relations b/w
the third person and the employer.
4- 5
Contnd...
An agent may work for several principals at the same time but
servant usually serves only one master.
A principal is liable for the wrongs of his agent done within the
scope of his authority. A master is liable for the wrongs of the
servants if they are committed in the course of his employment.
4- 6
CREATION OF AGENCY
1. By express agreement
2. By implied agreement
3. By ratification (Approval)
4- 7
CLASSIFICATION OF AGENTS
Classification according to extent of authority
Special Agents
General agents
4- 8
General Agent
Special Agent
A Special agent is one who is appointed
to do some particular act or enter into
some particular contract
4- 9
Mercantile Agents
• Factor (Issues / Feature)
• Auctioneer
• Del Credere Agent
• Pakka and Katcha adatias
• Indentor (Authorized Dealer)
• Broker
• Commission Agent
4- 10
Factor
Possession of property
Sell on credit and in his own name
General lien
Cannot Barter
Cannot Delegate
4- 11
Auctioneer
Appointed to sell by auction
Deliver goods on receipt of price
Recover price from highest bidder
Can file suit in his own name
Particular Lien
4- 12
Del Credere Agent
Pakka Adatias
Guarantees Principal and Broker
Can himself perform
4- 13
Katcha Adatias
Indentor
Procures a sale or purchase on behalf of the
principal, with a merchant in the foreign
country
4- 14
Broker
Engage to buy or sell the property
Memorandum book- Sold and Bought note
Commission Agent
Employed to buy or sell or to Transact Business
Not Liable for third party , Particular lien
May or may not have possession
4- 15
Non Mercantile Agent
Wife as an Agent
•Living together and looking for necessaries
4- 16
If they live apart:-
No fault of wife, liable to pay for her maintenance
Or
If they live apart:-
Under no justifiable Circumstances, she is not her
Husband’s agent
4- 17
Sub agent and Substituted Agents
Sec 191:- Sub agent is employed by, and acting
under the control of the original agent in the
business of the agency
4- 18
DUTIES OF AGENT
1. To carry out the work undertaken according to the directions given by the
principal.
2. To carry out the work with reasonable care, skill and diligence.
5. To protect and preserve the interests of the principal in the case of his death
or insolvency.
8. Not to use information obtained in the course of the agency against the
principal.
4- 19
RIGHTS OF AGENT
1. Right of retainer.
3. Right of lien.
4. Right of indemnification.
5. Right of compensation.
4- 20
DUTIES OF PRINCIPAL
2. To indemnify the agent against the consequences of acts done in good faith
4- 21
RIGHTS OF PRINCIPAL
2)To obtain an account of secret profits and recover them and resist a
claim for remuneration.
4- 22
TERMINATION OF AGENCY
Agreement
4- 23
TERMINATION OF AGENCY CON’T
2. By operation of law
Performance of the contract
Dissolution of a company
4- 24