Business Law

Agency

An agent is a person employed to do any act for another or to represent another in dealings with 3rd person. The person for whom such act is done, or who is so represented, is called the principal. Contracts entered into through an agent, and obligations arising from acts done by an agent, may be enforced in the same manner and will have the same legal consequences, as if the contracts had been entered into and the acts done by the principal in person.

The constituted attorney of a person is his agent for the purposes mentioned in the power of attorney.

Kinds of Agent:

1. Mercantile Agent: sell or buy goods

2. Non-Mercantile Agent: services

3. Sub-agent: appointed by agent

Different Classes of agent:

1. Broker: bring two parties together. After the meets of two parties broker works end.

2. Factor: factor can interfere in selling and buying

3. Commission Agent: those who gets commission after sells

4. Auctioneer: those who bid in the auction

5. Del Credere Agent: those who guaranty that product will sell, if not he will compensate

6. General Agent & Particular Agent: general agent works with many products, like- Agora, Transcom. Particular agent works with one product or one brand, like- Sony, Samsung, rice seller

Method of creating Agency:

1. By express Agreement: A contract of agency may be created by express agreement. It is reasonable to appoint agents by executing a formal power of attorney on a written and stamped document.

2. By Implied Agreement: An agency agreement may be implied under certain circumstances from the conduct of the parties or the relationship between them. Circumstances sometimes force a person to act on behalf of another without any express authority from him. In such cases an agency of necessity is said to be created.

*Conditions of an agency by necessity:

• It must be impossible to get the principal’s instructions

• There must be an actual necessity for acting on his behalf

• The agent of necessity must act...