When an agency cannot be terminated or put an end to, it is said to be an irrevocable agency. An agency is irrevocable in the following cases: 1. Where the agency is coupled with interest An agency is said to be coupled with interest when it is created for securing some benefit to the agent … Read more
Section 201 mentions various modes of the termination of agency of an agent. The Section is as follows:- “201. Termination of agency.-An agency is terminated by the principal revoking his authority; or by the agent renouncing the business of the agency; or by the business of the agency being completed; or by either the principal … Read more
We will discuss the vicarious liability of principal for the acts of its agent in this post. Principal is vicarious liable for the acts of his agent. Section 238 of Indian Contract Act 1872 provides that when there is fraud or misrepresentation by an agent while making an agreement on behalf of the principal, apart … Read more
In this post, We will discuss the relations of principal and agent with third person in detail. When an agent acts on behalf of the principal, he creates relationship between the principal and the third person. In a contract of agency, an agent deals with the third parties on behalf of his principal. He enters into … Read more
The Indian Contract Act 1872 confers a number of rights on an agent, and imposes some corresponding duties on the principal. They are as follows: 1. Right to Remuneration (Section 219) Section 219 contains the following provision regarding agent’s right to remuneration for the act done on behalf of the principal: “219. When agent’s remuneration … Read more
Sub-agent defined According to Section 191, a “sub-agent” is a person employed by, and acting under the control of, the original agent in the business of agency. Position when sub-agent properly appointed So Where there is proper delegation of authority by the agent to the sub-agent or the appointment of the sub-agent is valid, the … Read more
Section 182 of the Indian Contract Act defines the term an Agent and principal, as per which, Agent is the person appointed by another person to represent in dealings or any kind of professional work with a third party. The principal is the person who appoints the agent to represent him. So the meaning of the … Read more
Ratification of Acts by principal can also create agency. A principal is bound by acts done by the agent with his authority which may be express or implied. He is also bound by acts done in emergency. In addition, he is bound on grounds of estoppel when there is apparent or ostensible authority vested in … Read more
In agency, an act done by an agent on behalf of the principal binds the principal towards a third person. The relationship of Principal and Agent between the person represented and the person representing has to exist in order that the principal’s liability towards the third person, arises. In the following situations, the principal is … Read more
Meaning of Agency Agency, as is well-settled, is a legal concept, which is employed by the Court when it becomes necessary to explain and resolve the problems created by certain fact situation. In other words, when the existence of an agency relationship would help to decide an individual problem, and the facts permit a Court … Read more