subject: Agent Under CONTRACT Laws [print this page] 1. INTRODUCTION:1. INTRODUCTION:
The contract which creates relationship of principal and agent is called agency. An agent is involving party to the contract of agency. He is merely connecting link. His authority can be revoked by the principal.
2. AGENT:
He is a person employed to do any act for another in dealing with third parties.
3. APPOINTMENT OF AGENT:
According to sec. 183
"Any person who is of the age of majority according to the law to which is subject, and who is of sound mind, may employ an agent.
4. WHO MAY BE AGENT:
According to Sec. 184.
"As between the principal and third person, any person may become an agent, but no person who is not of the age of majority and of sound mind can become an agent, so as to reasonable to his principal according to provisions in that behalf herein contained.
9. EXTENT OF AUTHORITY OF AGENT:
An agent having authority to do an act has authority to do every lawful thing which is necessary in order to do such
act.
An agent having an authority to carry on business has authority to do every lawful thing necessary for the purpose or usually done in the course of conducing such business.
10- AGENTS AUTHORITY IN CASE OF EMERGENCY:
He has authority to do all such acts for the purpose of protecting his principal from all losses.
Illustration:
An agent for sale may have goods repaired If it be necessary.
11. REVOCATION THE AUTHORITY OF AGENT:
In the following ways authority is revoked.
(i) If principal revoke authority before agent has
exercised his power,
(ii) In case of death of principal,
(iii) In case of death of agent.. I
(iv) If agent give up business of agency,
(v) In case of insanity of principal,
(vi) In case of insanity of agent,
(vii) If principal become insolvent,
(viii) If subject matter of the agency is destroyed
(ix) On expiry of time.
12. GROUND ON WHICH AN AGENT CAN BE SUED:
Agent can be sued on the following grounds.
(i) When he does not disclose the name of the
principal,
(ii) When agent receive money by mistake or fraud,
(iii) When agent performs any act without the
authority of principal.
(iv) If agent made a contract with a foreigner foi the
sale or purchase of goods,
(v) If he make contract in his own name and not by
the name of principal,
(vi) If an agent has agreed to accept the liability of
the third party,
(vii) If an agent on the bill of exchange without
disclosing that he is singing on behalf principal.
13. CONCLUSION:
To conclude I can say that. An agent is authorized to create a contract between his principal and third party. An agent can be sued on his personal liabilities and the authority of an agent can be revoked.
