This document discusses the rights and duties of agents and principals under Indian contract law, as well as the concept of delegation of authority. It outlines several key rights of agents, including the right to receive remuneration, retain property, claim compensation, and receive indemnity. It also describes several duties of agents, such as conducting business according to the principal's directions, using skill and diligence, rendering proper accounts, and communicating with the principal. The rights and duties of principals are also summarized, including the duty to indemnify agents and pay remuneration. Delegation of authority is defined as subdividing and allocating powers to subordinates to achieve effective results.

1. 1.RIGHTS AND DUTIES OF AGENT
2.RIGHTS AND DUTIES OF PRINCIPAL
3.DELEGATION OF AUTHORITY

2. ■ 1) Right to Receive Remuneration:
According to Section 219 of the Indian Contract Act, An agent is entitle to
his remuneration.
2) Right of Lien (Section221) :
In the absence of any contract to the contrary, an agent is entitled to retain
goods, papers, and other property, whether movable or immovable, of the
principal received by him.
Rights and Duties of Agent:

3. ■ 3) Right to Compensation :
According to section 225 of the said Act, an agent is entitled to claim
compensation for the injuries suffered as a consequence.
■ 4)Right to Indemnity:
Agent to be indemnified against consequences of lawful acts.
Indemnity means promise make good the loss
Rights and Duties of Agent:

4. Duties of Agent:
■ 1) Agent’s duty in conducting principal’s business (Section
211) :
An agent is bound to conduct the business of his principal
according to the directions given by the principal.
■ 2) Skill and diligence required from agent (Section 212) :
An agent is bound to conduct the business of the agency with as
much skill as is generally possessed by persons engaged in
similar business, unless the principal has notice of his want of
skill.

5. ■ 3) Duty to render proper accounts (Section 213)
■ According to Section 213 of Indian Contract Act 1872, An
agent is bound to render proper accounts to his principal on
demand.
■ 4) Duty to communicate with principal (Section 214) :
■ It is the duty of an agent, in cases of difficulty, to use all
reasonable diligence in communicating with his principal, and
in seeking to obtain his instructions.

6. Rights and Duties of principal:
1.To indemnify the agent
■ Against consequences of the lawful act (sec 222)
2.To pay remuneration and dues (sec 217)
It is the principal’s duty to pay his agent such remuneration as may be
payable to him as an agent
3.Compensate the agent for injury caused(Sec 225)
The principal must make compensation to his agent in respect of injury
caused to the agent by the principal’s neglect or want of skill.

7. Rights and duties of principal:
4.Insrepresentations or fraud by agent (sec 238)
■ In order that a principal shall be made liable for the
misrepresentations and frauds committed by the agent, such
misrepresentations or frauds must be committed by the agent.

8. Rights of principal:
■ (1)He can enforce the various duties of an
agent.
■ (2) He can recover compensation for any breach
of duty by the agent.
■ (3) He can forfeit agent’s remuneration where
the agent is guilty of misconduct in the business
of agency.

9. ■ (4) Principal is entitled to any extra profit that
the agent has made out of his agency.This
includes illegal gratification, if any.
■ (5) Principal is entitled to receive all sums that
the transactions, entered into, by the agent, on
behalf of the principal were void or illegal.

10. Delegation of Authority:
■ The Delegation of Authority is an organizational
process wherein, the manager divides his work
among the subordinates and give them the
responsibility to accomplish the respective
tasks.Delegation is about entrusting someone else
to do parts of your job.
■ Delegation of authority can be defined as
subdivision and sub-allocation of powers to the
subordinates in order to achieve effective results.

11. Delegation of authority:

12. Elements of Delegation of Authority:
■Accountability
■Authority
■Responsibility

13. Importance of Delegation of
authority:
■ Delegation of authority is the ground on which the superior-
subordinate relationship stands. An organization functions as the
authority flows from top level to bottom
■ Delegation of authority in a way gives enough room and space to
the subordinates to flourish their abilities and skill.
■ Delegation of authority is help to both superior and subordinates.
This, in a way, gives stability to a concern’s working.