Special contracts

Contract of Agency

Section. -182 of Indian contract act defines an agent as a “person employed to do any act for another or to represent another in dealings with the third person”. In other words, an agent is such kind of person who acts on behalf of his master or principal. He works for his principal and him responsible for his works. For example, A has appointed B a mediator to sell his flats. A is the master and B is the agent or can be called as broker or Mediator .the relation between A and B is called agency. The contract can also be express or implied whereby one party acts as the Authority to assign work to the agent and that agent represents his authority in front of the third party. The main moto of the agent is to get the contracts done between the master and the third party. it can be said that the agent bridges the gap Between the master and the agent. As the agent does work on behalf of the principal the works done by the agent will make principal liable by the works done by him.‘ Qui facit per alium facit per se ‘ is the principle of an agency which means ‘he who does through another does by himself.

Who can employ an agent?

According to sec-183 it states that any person who has attained the age of 18 years can appoint an agent .providing which the person who is hiring shall be of sound mind .as the master is the main authority and works will be allotted by the Master a lunatic master cannot represent the principal as the lunatic person cannot represent Himself as well.

Who may be an agent?

An agent in the contract of agency holds a very important and major place in representing the principal to the third party so it is quite understood that the person must be competent and sound-minded but there are no restrictions as to the appointment of minor as an agent .however in considering the contract of the agency itself, the contractual capacity of the agent becomes important. sec 184 –“ as between the principal and the third person any person may become an agent, but no person who is not of the age of majority and sound mind can become an agent, to be responsible to his principal according to the provisions in that behalf .thus, if the agent happens to be a person incapable of contracting, then the principal cannot hold the agent liable, in case he misconducts or has been negligent in the performance of his duties. Example: X appoints Y a minor to sell his car for not less than Rs.15000.Y sells it for Rs 14000. X will be held bound by the transaction and further shall have no right against Y for claiming the compensation for having not obeyed the instructions. , since Y is a minor and a contract with minor is void -ab -initio (void since the initial stage )