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Law of agency ppt @ bec doms
Law of agency ppt @ bec doms
Law of agency ppt @ bec doms
Law of agency ppt @ bec doms
Law of agency ppt @ bec doms
Law of agency ppt @ bec doms
Law of agency ppt @ bec doms
Law of agency ppt @ bec doms
Law of agency ppt @ bec doms
Law of agency ppt @ bec doms
Law of agency ppt @ bec doms
Law of agency ppt @ bec doms
Law of agency ppt @ bec doms
Law of agency ppt @ bec doms
Law of agency ppt @ bec doms
Law of agency ppt @ bec doms
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Law of agency ppt @ bec doms

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Law of agency ppt @ bec doms

Law of agency ppt @ bec doms

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  • 1. Law of Agency
    • Who is an Agent and a Principal? (Sec. 182)
    • An Agent is a person employed to do an act for another or to represent another in dealings with third persons.
    • The person for whom such act is done, or who is so represented, is the Principal .
    • The relationship between them is called Agency .
  • 2.
    • Who can be appointed an Agent?
    • Any major person and of sound mind may become an agent to be responsible to the Principal.
    • There is no bar to the appointment of a minor as an Agent but a minor, however, cannot be held personally liable.
    • The concept of a servant may, in a sense involve an element of agency but on that account a servant is not regarded as an agent and an agent is never a servant.
    • It is a matter of control and supervision.
  • 3.
    • Who can employ an Agent?
    • A person who is of the age of majority and is of sound mind may employ an Agent (Section 183). No consideration is necessary to create an agency (Section 185).
    • Test of Agency: It is whether a person has the capacity to bind the Principal by acts done on his behalf.
    • It is the power of an agent to make the principal answerable to third person that determines existence of agency.
  • 4. Creation of Agency
    • Agency by agreement (Section 186 & 187).
    • Agency by necessity.
    • Agency by holding out (Section 237).
    • Agency by operation of law.
    • Agency by ratification
    • Ratification is adopting or accepting subsequently a past act of an agent done on behalf of another w/o authority. It is subsequent confirmation of unauthorized acts.
  • 5. Rules Governing Ratification
    • Act must be done by a person on behalf of another.
    • Act must have been done w/o knowledge or authority of the person on whose behalf the act is done.
    • Person must be legally in existence.
    • May be expressed/implied by conduct of the person.
    • Act to be ratified must not be void ab-initio.
  • 6.
    • Principal must be competent to ratify both at the time of contract and at time of ratification.
    • It must be done within a reasonable time.
    • It can be for whole contract and not part of it.
    • It should not put a third party to damages.
  • 7. Classification of Agents
    • Specific or Particular Agent: Appointed to do a single act for the Principal. Also called a Special Agent.
    • General Agent: Appointed to do all acts concerning a particular trade or business of the Principal.
    • Mercantile Agents: Broker, Commission Agent, Factor (authority to sell to 3 rd person), Auctioneer, Del-credere Agent (extra commission).
  • 8.
    • Sub-agent: An agent appointed by the original agent.
    • Co-agent: Two or more persons appointed as agents by the Principal to act as such jointly or severally.
    • Substitute Agent: Where an agent holding an express/implied authority to name another person accordingly, as part of the business of the agency as is entrusted to him. He is an agent of the Principal.
  • 9. Agent’s Authority
    • Agent’s capacity to bind the Principal is his authority.
    • Agent does certain acts on behalf of the principal.
    • His authority extends to such acts authorized.
    • The authority of an agent may be express or implied (Section 186).
  • 10. Revocation of Agent’s Authority
    • Revocation by Principal: Can at anytime before the authority has been exercised so as to bind the Principal (Section 203).
    • Notice must be given before revoking the authority, otherwise Agent will be entitled to damages (Section 206).
    • A empowers B to let A’s house. Afterwards A lets it to himself. This is revocation of B’s authority and is implied.
  • 11. When Agency cannot be revoked?
    • Agent has exercised authority partly.
    • Agency coupled with interest: A gives authority to B to sell A’s land, and to pay himself, out of the proceeds (to the debt due to him from A) . A cannot revoke this authority, nor can it be terminated by his insanity or death.
    • When Agent is personally liable.
  • 12. Duties of an Agent
    • To conduct Principal’s business.
    • Conduct the business with skill & diligence.
    • To render proper accounts.
    • To pay sums received to the Principal.
    • To communicate with Principal.
    • On Principal’s death or insanity.
    • Not to deal on his own account.
    • Use of information not against Principal.
    • No secret profit.
    • Not to delegate.
    • Naming another agent for principal.
    • Liable for acts of sub-agents.
    • Liable for misrepresentations or fraud.
    • Liable for damages.
  • 13. Agent’s Rights
    • Right to retain all moneys due to him.
    • Right to claim remuneration.
    • Right to lien.
    • Right to indemnity.
    • Right to be compensated.
    • In emergency: to do such act as to protect Principal from loss.
    • To appoint substitute agent.
    • To renounce agency.
    • Compensation for premature revocation.
  • 14. Principal’s Duties & Liabilities
    • To indemnify the agent. (i) Against consequences of lawful act, and (ii) Against consequences of the acts done in good faith.
    • Compensate for injury caused.
    • To pay remuneration and dues.
    • Misrepresentation or fraud by Agent: Is not liable if act falls beyond Agent’s authority.
    • Liable for contracts entered into by Agent with third persons.
    • Notice to the Agent is imputed notice to Principal.
  • 15. Principal’s Rights
    • To Repudiate contract (Section 215).
    • To claim benefits (Section 216).
    • To ratify or disown agent’s acts (Section 196).
    • To revoke Agent’s authority (Section 203)
    • To claim on loss or profit (Section 211 & 212).
    • To demand accounts (Section 213).
    • To refuse remuneration when agent is guilty of misconduct (Section 220).
  • 16. Termination of Agency
    • By act of parties: By agreement; By revocation and renunciation; By completion of performance.
    • By operation of law: By death or insanity; By insolvency of the principal.
    • Other modes of termination: By efflux of time (fixed period); By destruction of the subject-matter; By incapacity of Principal or Agent; Principal and Agent becoming alien enemy; By object of Agent becoming unlawful.

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