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The concept of Law of agency

Courtesy/By: Priyanka Bhattacharyya | 2020-07-24 05:57     Views : 339

Agency

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

In an emergency one person the principal employees another person's age to represent him for the act on his behalf in dealing with the third person the act of Agent find the principal in same manner in which he would be bound if he himself would have done the act.

The agent may be expressed or implied the authorised to act on behalf of the principal.

Ilustration

A Principle himself contracted to sell his car to third person the agent is the only connecting link between the principal and the third person contract entered through agent and the obligations arising from the act done by agent but the consequence of the act lies on the principal as if the act is done by principle himself

Some features  of contract of agency

  • The principal should be competent to contract
  • The agent mean of the competent to contract
  • No consideration is necessary to create agency
  • The principal should be competent to contract

Under section 183 any person who is of age of majority according to law to which he is subjected to and who is of sound Mind may be employed as an agent

It has already been noted that for a valid contract the parties must be competent to contract. Since in a agency the agent creates the contractual relationship between his principal and the third person it is necessary that the principal and the 3rd person should be competent to contract.

The agent may not be competent to contract

Section 184 make following provision regarding the capacity of agent

As between the principal and the third person any person may become a agent but more person who is not of the age of majority for of sound mind can become an agent so as to be responsible to history incable according to the provision in that behalf hearing content

The capacity of an agent could be looked from two angles firstly the capacity of the agent to act on the behalf of the principal so as to bind the principal and the third person.

  • His capacity to bind himself by a contract between himself and principal
  • No consideration is necessary to create an agency

Section 185 provides that no consideration is necessary to create an agency from the view nature of the contract of agency principles agrees to be bound by act done by the agent on his behalf and the service a sufficient to determine to principle moreover the principal's duty to identify the agent is also there and it is the duty of the principal to indemnify his agent

Courtesy/By: Priyanka Bhattacharyya | 2020-07-24 05:57