The word Agency means one person (the principal) employees another person who has been employed by the principal is known as the (agent) and the person who has been appointed by the principal represents the principal or a person who has been appointed on the behalf of the principal or the person(Principal) who is delegating authority in dealing with the third party. The act of Agent binds the principal in the same manner in which he would be bound if he does that act himself. The agent may be expressly or impliedly authorised to do an act on the behalf of the principal The agent is the person who is connecting link between the principle and the third person contracts

for example, if a person that is the principal of the authorizes his agent to sell his house to a third person and he does so the agent is only contracted to sell the house to the third person and the principal becomes bound for the sale of that house to the third person in the same way as if it has been constructed by the principal only

There are different kinds of Agent depending on the kind of authority given to the agent to act on the behalf of the principal the agents are of various kinds

1. Auctioneer- An auctioneer is an agent whose business is to sell goods and other properties by the process of the auction the authority vested him to sell the goods only and not given warranties on the behalf of the seller and less expressly authorised him to do so he is a mercantile agent within the meaning of section 2(9) of the sale of goods act
2. Factors- a factor is a mercantile agent who is interested in the position of goods for sale. he has also the power to sell the goods on credit and also received the price from the buyer if the owner has put a factor in possession of the goods or the document of title but without authorising him to sell the goods will convey a good title to Bonafide buyers. According to (Section 171) of the Contract Act, A factor has the right of general lien and over the goods belong to his principal which are in his position for the general balance of accounts

3.Broker- The agent is the person who is connecting link between the principle and the third person to contract. The broker is an agent who has any authority to negotiate the sale or purchase of goods on behalf of the with the third person and like of factor, he has no position of the good He merely takes two parties to enter into a contract. He gets his commission whenever any transaction is materialized through his efforts

4. Del credere agent- Generally the function of the agent is over after a contract is established between the principle and the third-party he is not answerable to the principal for the failure of the third party to perform the contract the agent constitute an exception to this rule. He is a mercantile agent who on the payment of some extra Commission known as Del credere Commission the person basically guarantees the performance of the contract on the behalf of the third party and if in any case the third party, for instance, fails to pay for the goods or services which has been rendered or supplied then the principal can bring the action against the Del credere agent for the same and the liability of the Del credere agent is like a surety is secondary and same arises if the third person fails to pay the principal what has been due under the contract which has been made between the parties