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Agency

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Agency

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Agency

  1. 1. Vishisht school of management Topic – agency From - RAKESH SHARMA
  2. 2. MEANING OF AGENCY • AN AGENCY IS THE RELATION BETWEEN AN AGENT AND HIS PRINCIPAL CREAED BY AN EXPRESS OR IMPLIED AGREEMENT WHEREBY AN AGENT IS AUTHORISED BY REPRESENT HIM AND ESTABLISH CONTRACTUAL RELATION WITH THIRD PARTIES
  3. 3. ESSENTIALS OF AGENCY • NAME OF A RELATION • AGREEMENT , NOT NECESSARILY A CONTRACT • COMPETENCE OF THE PRINCIPAL • CONSIDERATION NOT NECESSARY • FREE CONSENT • INTENTION TO CRAETE CONTRACTUAL RELATIONS • OTHER ESSENTIALS
  4. 4. AGENT • AN ‘AGENT’ IS A PERSON EMPLOYED TO DO ANY ACT FOR ANOTHER OR TO REPRESENT ANOTHER IN DEALINGS WITH THIRD PERSON. [SEC. 182 ]
  5. 5. WHO MAY BE AN AGENT AS BETWEEN THE PRINCIPAL AND THIRD PERSON, ANY PERSON MAY BECOME AN AGENT. [SEC. 184] EVEN A MINOR OR A PERSON OF UNSOUND MIND CAN BE APPOINTED AS AN AGENT. THE REASON IS THAT THE AGENCY MAY BE CREATED BY AN AGREEMENT BUT NOT NECESSARILY BY A CONTRACT.HOWEVER, THE APPOINTMENT OF A MINOR OR A PERSON OF UNSOUND MIND AS AN AGENT HAS SERIOUS CONSEQUENCES. THEY ARE : 1. SUCH AGENT IS NOT RESPONSIBLE TO HIS PRINCIPAL FOR HIS WRONGFUL ACTS OR ACT DONE BEYOND AUTHORITY. 2. THE PRINCIPAL REMAINS LIABLE TO THE THIRD PARTIES FOR ALL THE ACTS DONE ON HIS BEHALF BY SUCH AN AGENT.
  6. 6. PRINCIPAL • THE PERSON FOR WHOM SUCH ACT IS DONE , OR WHO REPRESENTED , IS CALLED THE ‘PRINCIPAL’ . [SEC. 182 ]
  7. 7. WHO MAY BE AN PRINCIPAL • ANY PERSON , WHO IS COMPETENT TO ACT FOR HIMSELF , MAY BECOME A PRINCIPAL. THEREFORE , ANY PERSON WHO IS OF THE AGE OF MAJORITY AND WHO IS OF SOUND MIND MAY EMPLOY AGENT . [SEC. 183] THUS, A MINOR , LUNATIC OR OTHER PERSON OF UNSOUND MIND CANNOT EMPLOY AN AGENT.
  8. 8. RULES OF AGENCY • WHAT A PERSON CAN DO HIMSELF , CAN GET DONE TROUGH AN AGENT • WHATEVER A PERSON DOES TAROUGH ANOTHER , DOES BY HIMSELF
  9. 9. CREATION OF AGENCY • AGENCY BY EXPRESS AGREEMENT OR AUTHORITY. • AGENCY BY IMPLIED AGREEMENT OR AUTHORITY. THIS INCLUDES THE FOLLOWING TYPES OF AGENCY 1. AGENCY BY ESTOPPEL. 2. AGENCY BY HOLDING OUT. 3. AGENCY BY NECESSITY. 4. AGENCY BY RATIFICATION. 5. AGENCY BY OPERATION OF LAW.
  10. 10. DUTIES OF AGENT • TO CONDUCT BUSINESS ACCORDING TO HE DIRECTIONS GIVEN BY THE PRINCIPAL • TO CONDUCT THE BUNIESS WITH SKILL AND DILIGENCE • TO COMPENSATE FOR NEGLECT, MISCONDUCT ETC . • TO RENDER PROPER ACCOUNTS • TO COMMUNICATE WITH PRINCIPAL • NOT TO DEAL ON HIS OWN ACCOUNT WITHOUT PRINCIPAL CONSENT • TO PAY SAM RECCIVED FOR PRINICIAL • TO PROTECT AND PRESERVE INTERESTS ENTRUSTED TO HIM • NOT TO DELEGATE AUTHORTY • NOT TO SET UP ADVERSE TITLE
  11. 11. RIGHTS OF AGENT • RIGHT OF RETAINER • RIGHT TO RECEIVE REMUNRATION • RIGHT TO LIEN • RIGHT TO BE INDEMNIFIED AGAINST CONSEQUENCES OF LAWFULL • RIGHT TO COMPENSATION • RIGHT TO STOPPAGE IN TRASIT
  12. 12. DUTIES OF PRINCIPAL • DUTIES OF PRINCIPAL TO HIS AGENT 1. TO PAY REMUNRATION TO HIS AGENT.(SECS.219-220) 2. TO INDEMNIFY THE AGENT AGAINST THE CONSEQUENCESOF ACTS DONE IN GOODS (SEC.223) 3. TO INDEMNIFY THE AGENT IN RESPECT OF INJURY CAUESD BY HIS NEGLECT OR WANT OF SKILL.(SEC.225) 4. TO INDEMNIFY THE AGENT AGAINST THE CONSEQUENCESOF ACTS.(SEC.222) • DUTIES OF RINCIPAL OF THIRD PRATIE 1. TO BE BOUND BY ALL ACT OF THE AGENT ACTING WITHING THE SCOPE OF HIS AUTHORITY .(SES. 226 227 228 237 238 ) 2. TO BE BOUND BY MISREPRASENTATION OR FRAUD OF HIS AGRENT IN THE COURES OF HIS EMPLOYMENT.(SEC.238) 3. TO BE BOUND BY NOTICE GIVEN TO THE AGENT.(SEC. 229) 4. TO BE RESPOMNSIBLE FOR CONTRACTS ENTERED INTO BY AGENT THOUGH HIS NAME IS NOT DISCLOSED . [SEC. 223, 224]
  13. 13. RIGHTS OF THE PRINCIPAL • TO DIRECT THE AGENT FOR THE CONDUCT OF HIS BUSINESS. [SEC.211] • TO DEMAND PROPER ACCOUNTS OF THE BUSINESSS OF AGENCY . [SEC.213] • TO CLAIM ALL SUMS RECEIVED BY THE AGENT ON HIS BEHALF . [SEC.217] • TO EMPOWER HIS AGENT TO NAME SUBSIYTUTED AGENT.[SEC.194] • TO EMPOWER HIS AGENT TO EMPLOY SUB- AGENT .[SEC.190]
  14. 14. EXTENT OF AGENTS AUTHORITY : IN ORDER TO BIND THE PRINCIPAL BY THE ACTS OF AN AGENT, IT BECOMES ESSENTIAL TO KNOW THE SCOPE OR EXTEND OF AGENT’S AUTHORITY. THE EXTEND OF AGENT’S AUTHORITY MAY BE DETERMINED BY THE FOLLOWING : 1. ACTUAL OR AUTHORITY. 2. OSTENSIBLE OR APPARENT AUTHORITY 3. AUTHORITY IN EMERGENCY
  15. 15. POSITION OF PRINICIPAL AND AGENT THE POSITION OF PRINCIPAL AS REGARDS TO THE CONTRACTS ENTERED INTO BY TH EAGENT WITH THIRD PARTIES MAY BE DISCUSSED UNDER THE FOLLOWING HEADS : I. WHERE THE PRINCIPAL IS NAMED , I.E. WHERE BOTH THE EXISTENCE AND THE NAME OF PRINCIPAL ARE DISCLOSED BY THE AGENT. II. WHERE THE PRINCIPAL IS UNNAMED ,I.E. WHEREE ONLY THE EXSITENCE OF THE PRINCIAL IS DICLOSED BUT NOT HIS NAME. III. WHERE THE PRINCIPAL IS UNDISCLOSED ,I.E. WHERE BNOTH THE EXISTENCE AND NAME OF THE PRINCPAL ARE NOT DISCLOSED
  16. 16. WHERE THE PRINCIAL IS NAMED : GENERALLY, AN AGENT DISCLOESD THE EXISTENCE AND NAME OF HIS PRINCIAL . THE POSITION OF SUCH A NAMED PRINICIPAL AS REGARD TO THE CONTRACTS MADE BY HIS AGENT WILL BE AS FOLLOWS: 1. ACTS OF AENT WITHIN HIS AUTHORITY • IF THE ACT DONE PROFESSEDLY N BEHALF OF THE PRINCIPAL. • IF THE ACT IS WITHIN THE SCOE OF HIS ACTUAL OR APPRENT AUTHORITY • IF THE ACT DONE IS IN THE COURES OF EMPLOYMENT OF THE AGENT , AND • IF THE ACTS ARE LAWFULL
  17. 17. 2. ACTS OF AN AGENT BEYOND AUTHORITRY • WHERE WORK HIS SEPRABLE • WHERE THE WORK HIS NOT SEPRABLE 3. NOTIES TO AGENT IS THE NOTIES TO THE PRINCIPAL 4. PRINCIPAL INDUCING BELIEF HAT AGENTS UNAUTHORISED ACTS WERE AUTHORISED 5. MISREPRESENTION OR FRUAD BY AGENT
  18. 18. WHERE THE PRINICIPAL IS UNNAMED WHEN AN AGENT DISCLOSRD THAT HE IS ACTING ON BEHALF OF HIS PRICIAL BUT DOES NOT DISCLOSED THE PRINCIPAL’S NAME, THE ACT WAS DONE ON BEHALF OF THE PRINCIPAL THE ACT WAS WITHIN THE SCOPE OF HIS AUTHORITY THE UNNAMED PRINCIPAL EXISTED OR WAS COMETENT TO CONTRACT AT THE TIME OF DOING THE ACT.
  19. 19. WHERE THE PRINCIPAL IS UNDISCLOSED 1. POSITION OF THE UNDISCLOSED PRINCIPAL • WHEN THE THIRD PARTIE DISCOVERS THE PRINCIPAL • WHEN THE PRINCIPAL HIM SELF INTERVENES 2. POSITION OF AGENT 3. POSITION OF THIRD PARTIE

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