Suvadip ChakrabortySUVADIP CHAKRABORTY/ NSHM DURGAPUR   8/16/2012         1
“ person employed to do any act for another or to represent another in dealings with third person”      SUVADIP CHAKRABOR...
„ Qui facit per alium facit per se‟ (He who does by another does by himself)      SUVADIP CHAKRABORTY/ NSHM DURGAPUR   8...
A  major individual with sound mind A Partnership firm A company      SUVADIP CHAKRABORTY/ NSHM DURGAPUR   8/16/2012   4
 Yes. Butthe principle cannot hold the agent liable for negligence or misconduct         SUVADIP CHAKRABORTY/ NSHM DURGA...
1.   Express Agency (Sec 187)- Appointed by     word of mouth or by writing2.   Agency by Ratifications (Section 196 to 20...
   An act performed by the agent beyond the scope of    his authority, if approved by the principal, is called    agency ...
     Features1)      Act must have been done on behalf of the person ratifying2)      The principal must be in existence ...
 Person by his conduct or statements induced  others to believe that a certain person is his  agentExample   Amit owns a ...
 Some  affirmative conduct by the principal is  necessary in creation of agency by holding  out Eg: P allows his servant...
 Ariseswhen there is no express or implied  appointment of a person as agent for another  but he is forced to act on beha...
1.   Mercantile Agents or Commercial Agents2.   Non Mercantile Agent or Non- Commercial     Agent        SUVADIP CHAKRABOR...
    Types1.    Broker2.    Factor3.    Commission Agent4.    Del Credere Agent5.    Auctioneer6.    Banker7.    Pakka and...
 Engaged  to buy or sell property or make  bargains and contract between the engager  and 3rd party He is entitled for c...
 Entrustedwith the possession of the goods with a authority to sell them      SUVADIP CHAKRABORTY/ NSHM DURGAPUR   8/16/2...
 Engaged to buy or sell goods for a  commission May have the possession of the goods He has particular lien to the good...
 Guarantees  the performance of the contract  for an extra remuneration Occupies the position of guarantor as well as  a...
 Appointed      as an agent to sell goods by auction      SUVADIP CHAKRABORTY/ NSHM DURGAPUR   8/16/2012   18
 Banker   is an agent of the customer when it:1.   buys or sells securities on his behalf2.   collects cheques, bills, in...
 Pakka  Adatias- Guarantees the performance  of the contract to the principal as well as to  the broker on the other side...
 Procures         sale or purchase for his principal for a commission with a merchant in a foreign country      SUVADIP C...
 Wife1.   If wife and husband are living together2.   If wife and husband are living separatelya)   No fault of the wife ...
1.   To conduct the business of agency according to the principal‟s     direction (S. 211)2.   The agent should conduct th...
1.   Right to Remuneration (S. 219 to S. 220)2.   Right of Retainer (S. 217)3.   Right of Lien (S. 221)4.   Right of stopp...
1.   Bound to indemnify the agent against the     consequences of all lawful acts done by such agent     in exercise of th...
1.   “ contracts entered into through an agent,     and obligations arising from acts done by an     agent , and obligatio...
2) The act of the agent is binding for the principal which has been   performed by the agent within his scope of authority...
    Agent can personally enforce contracts entered into by him on     behalf of the principal, and he is personally bound...
1.   By revocation by the principal2.   On the expiry of fixed period of time3.   On the performance of the specific purpo...
SUVADIP CHAKRABORTY/ NSHM DURGAPUR   8/16/2012   30
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Contract of agency

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Contract of agency

  1. 1. Suvadip ChakrabortySUVADIP CHAKRABORTY/ NSHM DURGAPUR 8/16/2012 1
  2. 2. “ person employed to do any act for another or to represent another in dealings with third person” SUVADIP CHAKRABORTY/ NSHM DURGAPUR 8/16/2012 2
  3. 3. „ Qui facit per alium facit per se‟ (He who does by another does by himself) SUVADIP CHAKRABORTY/ NSHM DURGAPUR 8/16/2012 3
  4. 4. A major individual with sound mind A Partnership firm A company SUVADIP CHAKRABORTY/ NSHM DURGAPUR 8/16/2012 4
  5. 5.  Yes. Butthe principle cannot hold the agent liable for negligence or misconduct SUVADIP CHAKRABORTY/ NSHM DURGAPUR 8/16/2012 5
  6. 6. 1. Express Agency (Sec 187)- Appointed by word of mouth or by writing2. Agency by Ratifications (Section 196 to 200)3. Implied Agency (Sec 187)- Appointed by conduct, situation or relationship of partiesa) Agency by Estoppel (Sec 237)b) Agency by Holding Outc) Agency of Necessity (Sec 189) SUVADIP CHAKRABORTY/ NSHM DURGAPUR 8/16/2012 6
  7. 7.  An act performed by the agent beyond the scope of his authority, if approved by the principal, is called agency by ratification Example Mrs. Ankita Sharma bought 1 neck tie amounting to Rs.500 from the local garment shop on credit saying that his husband, Mr. Angad Sharma will pay for the same after 5 days. The neck tie was bought for the purpose of use by Mr. Angad Sharma. Mr. Angad Sharma did not know about the purchase till he was approached by the shop keeper for the payment after the expiry of 5 days.He paid the due amount of money to the shop keeper on the spot. On returning to his home, he enquired Mrs. Ankita Sharma about the purchase. She confirmed about the same to her husband. SUVADIP CHAKRABORTY/ NSHM DURGAPUR 8/16/2012 7
  8. 8.  Features1) Act must have been done on behalf of the person ratifying2) The principal must be in existence at the time of the act that is to be ratified3) The ratifier should be competent to ratify the act4) The transaction must have been subsisting at the time when it is ratified5) The principal must have signified his unconditional acceptance of the act6) Ratification may be expressed or implied7) Ratifications must have been made with full knowledge of all the material facts8) Whole transaction must be ratified9) Ratification must be made within a reasonable time10) Act to be ratified should not be void or illegal11) Ratification must be communicated12) Ratification must not injure the 3rd person13) Ratification relates back to the date of act of the agent SUVADIP CHAKRABORTY/ NSHM DURGAPUR 8/16/2012 8
  9. 9.  Person by his conduct or statements induced others to believe that a certain person is his agentExample Amit owns a shop in Ranigunje, living himself at Durgapur, and visiting the shop occasionally. The shop is managed by Banti and he is in the habit of ordering goods from Cyril in the name of Amit for the purpose of the shop, and of paying them out of Amit’s funds with Amit’s knowledge. Banti has an implied authority from A to order goods from Cyril in the name of Amit for the purpose of the shop. SUVADIP CHAKRABORTY/ NSHM DURGAPUR 8/16/2012 9
  10. 10.  Some affirmative conduct by the principal is necessary in creation of agency by holding out Eg: P allows his servant A to buy goods on credit from C and pays them regularly. On one occasion, P pays cash to A for purchase of goods by cash. A pockets the money and purchases the goods on credit. C can recover the sum from P since through previous dealings P has held out his servant A as his agent SUVADIP CHAKRABORTY/ NSHM DURGAPUR 8/16/2012 10
  11. 11.  Ariseswhen there is no express or implied appointment of a person as agent for another but he is forced to act on behalf of a particular personExample Amit , truck driver was taking a consignment of live cattles in his truck from Sonepur to Kolkata. There was a road block along the road near Kolkata.He was held for 10 days as a result of the road block.The live stocks had to be fed during the 10 days of held up. The driver should be compensated for the expenses of feeding by the consignee. SUVADIP CHAKRABORTY/ NSHM DURGAPUR 8/16/2012 11
  12. 12. 1. Mercantile Agents or Commercial Agents2. Non Mercantile Agent or Non- Commercial Agent SUVADIP CHAKRABORTY/ NSHM DURGAPUR 8/16/2012 12
  13. 13.  Types1. Broker2. Factor3. Commission Agent4. Del Credere Agent5. Auctioneer6. Banker7. Pakka and Katcha Adatias8. Indentor SUVADIP CHAKRABORTY/ NSHM DURGAPUR 8/16/2012 13
  14. 14.  Engaged to buy or sell property or make bargains and contract between the engager and 3rd party He is entitled for commission for this (brokerage) SUVADIP CHAKRABORTY/ NSHM DURGAPUR 8/16/2012 14
  15. 15.  Entrustedwith the possession of the goods with a authority to sell them SUVADIP CHAKRABORTY/ NSHM DURGAPUR 8/16/2012 15
  16. 16.  Engaged to buy or sell goods for a commission May have the possession of the goods He has particular lien to the goods SUVADIP CHAKRABORTY/ NSHM DURGAPUR 8/16/2012 16
  17. 17.  Guarantees the performance of the contract for an extra remuneration Occupies the position of guarantor as well as an agent SUVADIP CHAKRABORTY/ NSHM DURGAPUR 8/16/2012 17
  18. 18.  Appointed as an agent to sell goods by auction SUVADIP CHAKRABORTY/ NSHM DURGAPUR 8/16/2012 18
  19. 19.  Banker is an agent of the customer when it:1. buys or sells securities on his behalf2. collects cheques, bills, interest, dividend3. pays insurance premium out of the customer‟s accounts on the customer‟s order SUVADIP CHAKRABORTY/ NSHM DURGAPUR 8/16/2012 19
  20. 20.  Pakka Adatias- Guarantees the performance of the contract to the principal as well as to the broker on the other side Katcha Adatias- Guarantees performance on part of the principal to the broker SUVADIP CHAKRABORTY/ NSHM DURGAPUR 8/16/2012 20
  21. 21.  Procures sale or purchase for his principal for a commission with a merchant in a foreign country SUVADIP CHAKRABORTY/ NSHM DURGAPUR 8/16/2012 21
  22. 22.  Wife1. If wife and husband are living together2. If wife and husband are living separatelya) No fault of the wife – The husband is bound to pay her for necessities as she is the agent of her husbandb) Fault of the wife- The husband is not bound to pay her for necessities as she is not the agent of her agent SUVADIP CHAKRABORTY/ NSHM DURGAPUR 8/16/2012 22
  23. 23. 1. To conduct the business of agency according to the principal‟s direction (S. 211)2. The agent should conduct the business with the skill and diligence that is generally possessed by person engaged in similar business (S. 212)3. To render proper accounts (S. 213)4. Not to make any secret profits5. Not to deal on his own account6. Agent is not entitled to remuneration for business misconducted7. Should not disclose confidential information8. When the agency is terminated by the principal dying or becoming of unsound mind SUVADIP CHAKRABORTY/ NSHM DURGAPUR 8/16/2012 23
  24. 24. 1. Right to Remuneration (S. 219 to S. 220)2. Right of Retainer (S. 217)3. Right of Lien (S. 221)4. Right of stoppage in transit5. Right of Indemnification (S. 222-224)6. Right to compensate for injury caused by principal‟s neglect (S. 225) SUVADIP CHAKRABORTY/ NSHM DURGAPUR 8/16/2012 24
  25. 25. 1. Bound to indemnify the agent against the consequences of all lawful acts done by such agent in exercise of the authority conferred upon him (S. 222)2. Liable to indemnify an agent against the consequences of an act done in good faith, though it causes an injury to the rights of a third person (S. 223)3. The principal is, however, not liable for acts which are criminal in nature though done by the agent at the instance of the principal (S. 224)4. The principal must make compensation to his agent in respect of injury caused to such agent by principal‟s neglect or want of skill (S. 225) SUVADIP CHAKRABORTY/ NSHM DURGAPUR 8/16/2012 25
  26. 26. 1. “ contracts entered into through an agent, and obligations arising from acts done by an agent , and obligations arising from acts done by an agent, may be enforced in the same manner and have the same legal consequence, as if the contracts had been entered into and the acts done by the principal himself” SUVADIP CHAKRABORTY/ NSHM DURGAPUR 8/16/2012 26
  27. 27. 2) The act of the agent is binding for the principal which has been performed by the agent within his scope of authority (in case the separation between the activities within the agent‟s authority and outside his authority is possible)4) The act of the agent is not binding for the principal which has been performed by the agent within his scope of authority (in case the separation between the activities within the agent‟s authority and outside his authority is not possible)5) The act of fraud and misrepresentation by the agent is binding for the principal which has been performed by the agent within his scope of authority6) The principal remains liable to the 3rd parties even if the principal‟s name has not been disclosed7) The liability of the principal continues even in cases where agent is held personally responsible SUVADIP CHAKRABORTY/ NSHM DURGAPUR 8/16/2012 27
  28. 28.  Agent can personally enforce contracts entered into by him on behalf of the principal, and he is personally bound by them only if there is an agreement to that effect (S. 230) An agent is personally liable in the following cases:1. Breach of Warranty2. Where an agent expressly agrees to be personally liable3. Where an agent signs an negotiable instrument in his own name4. An agent with a special interest or with a beneficial interest (factor or auctioneer) can sue and can be sued personally5. When an agent is guilty of fraud or misrepresentation in matters which do not fall within his authority6. Where the agency is one coupled with interest SUVADIP CHAKRABORTY/ NSHM DURGAPUR 8/16/2012 28
  29. 29. 1. By revocation by the principal2. On the expiry of fixed period of time3. On the performance of the specific purpose4. Insanity or death of the principal or agent5. Insolvency of the principal6. By renunciation of agency by the agent SUVADIP CHAKRABORTY/ NSHM DURGAPUR 8/16/2012 29
  30. 30. SUVADIP CHAKRABORTY/ NSHM DURGAPUR 8/16/2012 30
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