APPOINTMENT

The provisions relating to Agency are contained

in sections 182 238 of the Indian contract act

1872.
According to sec 182, an agent is a person
employed to do any act for another or represent
another in dealings with third persons.
The person for whom such an act is done or
who is so represented is called the principal.
Any person who is a major and who is of sound
mind may employ an agent.

qui facit per alium facit per se.

Whatever a person can do personally,

he can do through an agent.

Any person may become an agent, but
minors and persons of unsound mind
cannot be held responsible to their
principal.
No consideration is necessary for
agency.
The authority of an agent maybe
express or implied.

AGENT AND SERVANT

An agent is vested with authority to create

contractual relationship between the

principal and a third party. A servant does
not ordinarily create such relationship.
Agent follows instructions but not subject to
direct control and supervision, whereas a
servant works under direct control.
An agent may work for several principals at
the same time but the servant usually not.

CREATION OF AGENCY
Agency by express agreement.
Agency by implied agreement.
Agency by estoppel
Agency by holding out.
Agency by necessity.
Agency by ratification.
Agency by operation of law.

REQUISITES OF VALID
RATIFICATION

Agent must purport to act as agent.

The principal must be in existence at the
time of contract.
The principal must be competent to
contract both at the time of contract and
ratification.
Ratification must be with full knowledge of
facts and within a reasonable time of the act
The act ratified must be lawful not void or
illegal.

Ratification should be of the whole

transaction and communicated.

Ratification can be of the acts which
the principal had the power to do.
Ratification should not put a third
party to damages.
Ratification relates back to the date
of the act.

CLASSIFICATION OF
AGENTS

Classification as to extend of authority.

Special agent.
General agent.
Universal agent.
Classification as to nature of work.
Factor.
Auctioneer
Broker.
Commission agent.

Del credere agent.

DUTIES OF AGENT
To carry out the work according to the

directions of the principal.

To carry out the work with reasonable
care, skill and diligence.
To render proper accounts to the
principal.
To communicate with the principle in
case of difficulty.
Not to deal on his own account.
To pay sums received for the principal.

To protect and preserve the interests of

the principal in case of his death or

insolvency.
Not to use information obtained
against the principal.
Not to make secret profit from agency.
Not to set up an adverse title.
Not to put himself in a position of
conflict of interest.
Not to delegate authority.

RIGHTS OF AGENT
Right of retainer.
Right to receive remuneration.
Right of lien.
Right of indemnification.
Right of compensation.
Right of stoppage in transit.

RIGHTS AND DUTIES OF

PRINCIPAL
RIGHTS:-

To recover damages.
To obtain an account of secret profits.
To resist agents claim for indemnity.
DUTIES:To indemnify the agent against

consequences of all lawful acts, done in

good faith and injury caused by
principals neglect.

AGENTS AUTHORITY
Actual or real authority.
Ostensible authority.
Authority in an emergency.

POSITION OF PRINCIPAL AND

AGENT IN RELATION TO THIRD
Named Principal:PARTIES

Acts of agent or the acts of principal.

When the agent exceeds his authority.
Notice given to agent as notice to principal.
Misrepresentation or fraud.
Unnamed Principal.
Undisclosed Principal.

PERSONAL LIABILITY OF
AGENT
When contract expressly provides.
When the agent acts for a foreign

principal.
When he acts for undisclosed principal.
When he acts for a principal who cannot
be sued.
Where he signs a contract in his own
name.

Where he acts for a principal not in

existence.
Where he is liable for breech of warranty
of authority.
Where he receives or pays money by
mistake or fraud.
Where his authority is coupled with
interest.
Where the trade usage or custom makes
him personally liable.

TERMINATION OF AGENCY
[Sec 201].
By act of parties.
Agreement.
Revocation by the principal or agent.
By operation of law.
Completion of performance.
Expiry of time.
Death, insanity or insolvency.
Destruction of subject matter.
Principal becoming alien enemy
Dissolution of a company.

IRREVOCABLE AGENCY
Where the agency is coupled with

interest.
Where the agent has incurred a
personal liability.
Where the agent has partly exercised
the authority.