AGENCY

S. 182. "Agent" and "principal" defined

An "agent" is a person employed to do any act for another, or to represent another in dealing with third persons. The person for whom such act is done, or who is so represented, is called the "principal".

An "agent" is a person employed to do any act for another, or to represent another in dealing with third persons. The person for whom such act is done, or who is so represented, is called the "principal".

ESSENTIALS OF AGENGY
PRINCIPAL SHOULD BE COMPETENT TO CONTRACT
S. 183. Who may employ agent Any person who is of the age of majority according to the law to which he is subject, and who is of sound mind, may employ an agent.
MINOR CANNOT APPOINT AN AGENT WHATEVER A MAN CAN DO PERSONALLY HE CAN DO THROUGH A AGENT THERE IS NOTHING IN THE ACT WHICH PROHIBITS THE GUARDIAN OF A MINOR FORM APPOINTING AN GENT FOR HIM. THE AGENT NEED NOT BE COMPETENT TO CONTRACT A PERSON MAY CONTRAACT THROUGH A MINOR AGENT, BUT THE MINOR WILL NOT BE RESPONISBLE TO HIS PRINCIPAL.

S. 184. Who may be an agent As between the principal and third persons, any person may become an agent, but no person who is not of the age of majority and sound mind can become an agent, so as to be responsible to the principal according to the provisions in that behalf herein contained.
MARRIED WOMEN CAN ACT AS AGENTS COMPANY MAY ACT AS AGENT BEYOND ITS CAPACITY (ULTRA VIRES)

ESSENTIALS OF AGENGY
CONSIDERATION FOR APPOINTMENT NOT NECESSARY
185. Consideration not necessary No consideration is necessary to create an agency
GENERALLY, AN AGENT IS REMUNERATED BY WAY OF COMMISSION FOR SERVICES RENDERED, BUT NO CONSIDERATION IS IMMEDIATELY NECESSARY AT THE TIME OF APPOINTMENT

KINDS OF AGENT
FACTOR
AN AGENT ENTRUSTED WITH THE POSSESSION OF GOODS FOR THE PURPOSE OF SELLING THEM. MERCANTILE AGENT COURSE OF BUSINESS IS TO DISPOSE OF GOODS, OF WHICH HE IS ENTRUSTED WITH THE POSSESSION OR CONTROL BY HIS PRINCIPAL.

KINDS OF AGENT
BROKER
MERCANTILE AGENT APPOINTED TO NEGOTIATE AND MAKE CONTRACTS FOR THE SALE OR PURCHASE OF PROPERTY ON BEHALF OF HIS PRINCIPAL, BUT IS NOT GIVEN POSSESSION OF THE GOODS.

DEL CREDERE AGENT

MERCANTILE AGENT AN AGENT UNDERTAKES, ON PAYMENT OF SOME EXTRA COMMISSION, TO BE LIABLE TO HIS PRINCIPAL FOR THE FAILURE OF THE THIRD PARY TO PERFORM THE CONTRACT. HIS EXTRA COMMISSION DEL CREDERE COMMISSION. NOT LIABLE TO THE BUYER FOR ANY DEFAULT ON THE PART OF THE PRINCIPAL. NOR LIABLE FOR DISPUTES BET. THE PRINCIPAL AND BUYER

CREATION OF AGENCY
EXPRESS APPOINTMENT IMPLIED AGENCIES
ESTOPPEL BY NECESSITY
AGENT EXCEEDING HIS AUTHORITY IN AN EMERGENCY A PERSON ENTRUSTED WITH ANOTHERS PROPERTY HUSBAND AND WIFE HUSBAND NOT IMPLIED AGENT OF WIFE

CREATION OF AGENCY
AGENCIES BY RATIFICATION
REQUISITIES OF VALID RATIFICATION
THE PRINCIPLE SHOULD BE A SPECIFIC PERSON IDENTIFIABLE THE PRINCIPLE MUST BE IN EXISTENCE AT THE TIME OF CONTRACT ---- COMPANY PRINCIPAL HAVING CONTRACTUAL CAPACITY RACTIFICATION WITH FULL KNOWLEDGE OF FACTS WITHIN REASONABLE TIME ACT TO BE RACTIFIED MUST BE LAWFUL WHOLE TRANSACTION COMMUNICATION PRINCIPAL HAD THE POWER TO DO THE ACTS NO DAMAGES TO THIRD PARTY RELATES BACK TO THE DATE OF THE ACT OF THE AGENT

AGENCY BY OPERATION OF LAW PARTNERSHIP ACT

CLASSIFICAITON OF AGENTS
EXTENT OF THEIR AUTHORITY
SPECIAL -------- PARTICULAR ACT / TRANSACTION GENERAL ---- ALL ACTS PARTICULAR BUSINESS, TRADE OR EMPLOYMENT UNIVERSAL -- UNLIMITED AUTHORITY EVERN TO BIND THE PRINCIPAL

NATURE OF WORK PERFORMED

COMMERCIAL OR MERCANTILE AGENT
FACTOR -- GENERAL LEIN ACTIONEER -- PARTICULAR LEIN BROKER - NO LEIN COMMISSION AGENT DEL CREDERE AGENT

BANKER NON-MERCANTILE AGENT -- ATTORNEYS, SOLICITORS, INSURANCE AGENTS, WIFE, . . .

DUTIES OF AGENT
TO CARRY OUT THE WORK UNDERTAKEN ACCORDING TO THE DIRECTIONS GIVEN BY THE PRINCIPAL TO CARRY OUT THE WORK WITH REASONABLE CARE, SKILL AND DELIGENCE TO RENDER PROPER ACCOUNTS TO COMMUNICATE WITH THE PRINCIPAL IN CASE OF DIFFICULTY NOT TO DEAL IN HIS OWN ACCOUNT TO PAY SUMS RECEIVED FOR THE PRINCIPAL

DUTIES OF AGENT
TO PROTECT AND PRESERVE THE INTERESTS OF THE PRINCIPAL IN CASE OF HIS DEATH OR INSOLVENCY NOT TO USE INFORMATION OBTAINED TO THE COURSE OF THE AGENCY AGAINST THE PRINCIPAL NOT TO MAKE SECRET PROFIT FROM AGENCY NOT TO SET UP AN ADVERSE TITLE NOT TO PUT HIMSELF IN A POSITION WHERE INTEREST AND DUTY CONFLICT NOT TO DELEGATE AUTHORITY

RIGHTS OF AGENT
RIGHT OF RETAINER RIGHT TO RECEIVE REMUNERATION RIGHT OF LEIN
PARTICULAR LEIN BY CONTRACT -- SPECIAL LEIN

RIGHT OF INDEMNIFICATION RIGHT OF COMPENSATION RIGHT OF STOPPAGE IN TRANSIT

DUTIES OF PRINCIPAL
TO INDEMNIFY THE AGENT AGAINST THE CONSEQUENCES OF ALL LAWFUL ACTS TO INDEMNIFY THE AGENT AGAINST THE CONSEQUENCES OF ACTS DONE IN GOOD FAITH TO INDEMNIFY AGENT FOR INJURY CAUSED BY PRINCIPALS NEGLECT TO PAY THE AGENT THE COMMISSIONN OR OTHER REMUNERATION AGREED

RIGHTS OF PRINCIPAL
TO RECOVER DAMAGES TO OBTAIN AN ACCOUNT OF SECRET PROFITS AND RECOVER THEM AND RESIST AT CLAIM FOR REMUNERATION TO RESIST AGENTS CLAIM FOR IMDEMNITY AGIANST LIABILITY INCURRED.

DELEGATION OF AUTHORITY
SUB-AGENT
AN AGENT IS NOT ENTITLED TO DELEGATE HIS AUTHORITY TO ANOTHER PERSON WITHOUT THE CONSENT OF HIS PRINCIPAL. DELEGATUS NON POSTEST DELEGARE

S. 190. When agent cannot delegate An agent cannot lawfully employ another to perform acts which he has expressly or impliedly undertaken to perform personally, unless by the ordinary custom of trade a sub-agent may, or, from the nature of agency, a sub-agent must, be employed. S. 191. "Sub-agent" defined A "sub-agent" is a person employed by, and acting under the control of, the original agent in the business of the agency. 192. Representation of principal by sub-agent properly appointed

DELEGATION OF AUTHORITY
Where a sub-agent is properly appointed, the principal is, so far as regards third persons, represented by the sub-agent, and is bound by and responsible for his acts, as if he were an agent originally appointed by the principal. Agent's responsibility for sub-agents: The agent is responsible to the principal for the acts of the sub-agent. Sub-agent's responsibility: The sub-agent is responsible for his acts to the agent, but not to the principal, except in case of fraud or willful wrong. 193. Agent's responsibility for sub-agent appointed without authority Where an agent, without having authority to do so, has appointed a person to act as a sub-agent, the agent stands towards such person in the relation of a principal to an agent, and is responsible for his acts both to the principal and to third person; the principal is not represented, by or responsible for the acts of the person so employed, nor is that person responsible to the principal.

CO-AGENT AND SUBSTITUTED AGENT

194. Relation between principal and person duly appointed by agent to act in business of agency When an agent, holding an express or implied authority to name another person to act for the principal in the business of the agency, has named another person accordingly, such person is not a subagent, but an agent of the principal for such part of the business of the agency as is entrusted to him. Illustrations (a) A directs B, his solicitor, to sell his estate by auction , and to employ an auctioneer for the purpose. B names C, an auctioneer, to conduct the sale. C is not a sub-agent, but is A's agent for the conduct of the sale. (b) A authorises B, a merchant in Calcutta, to recover the moneys due to A from C & Co. B instructs D, a solicitor, to take legal proceedings against C & Co. For the recovery of the money. D is not a sub-agent, but is a solicitor for A. 195. Agent's duty in naming such person In selecting such agent for his principal, an agent is bound to exercise the same amount of discretion as a man of ordinary prudence would exercise in his own case; and, if he does this, he is not responsible to the principal for the acts of negligence of the agent so selected. Illustrations (a) A instructs B, a merchant, to buy a ship for him. B employs a ship-surveyor of good reputation to choose a ship for A. The surveyor makes the choice negligently and the ship turns out to be unseaworthy and is lost. B is not, but the surveyor is, responsible to A. (b) A consigns goods to B, a merchant, for sale. B, in due course, employes an auctioneer in good credit to sell the goods of A, and allows the auctioneer to receive the proceeds of the sale. The auctioneer afterwards becomes insolvent without having accounted for the proceeds. B is not responsible to A for the proceeds.

TERMINATION OF AGENCY
BY ACT OF PARTIES
AGREEMENT REVOCATION BY THE PRINCIPAL REVOCATION BY THE AGENT

BY OPERATION OF LAW
PERFORMATION OF THE CONTRACT EXPIRY OF TIME DEATH OR INSANITY INSOLVENCY DESTRUCTION OF SUBJECT MATTER PRINCIPAL BECOMING AN ALIEN ENEMY DISSOLUTION OF A COMPANY TERMINATION OF SUB-AGENTS AUTHORITY

IRREVOCABLE AGENCY
CANNOT BE TERMINATED OR PUT TO AN END 1. WHERE THE AGENCY IS COUPLED WITH INTEREST --- ONLY IF AGENCY CREATED FOR THE PROTECTION OF THE INTEREST OF THE AGENT. 2. WHERE THE AGENT HAS INCURRED A PERSONAL LIABILITY 3. WHERE THE AGENT HS PARTLY EXERCISED THE AUTHORITY

THANKS