Dutiesįollowing are the duties of the principal: It is the right of an agent to stop the goods in transit to the principal like an unpaid seller if he has bought goods with his own money and the principal has become insolvent.An agent has to be indemnified against the consequences of all lawful acts done by him in the exercise of the authority conferred upon him.An agent has the right to retain all money in respect of his remuneration, advances or reasonable expenses incurred by him in conducting the business.Every agent is entitled to receive agreed remuneration, or if there is no agreement, a reasonable remuneration.Read More: rights and duties of buyer and seller Rights An agent must not delegate his authority to a different person, but perform the work of agency himself.An agent should not make any secret profit out of his agency or agency agreement.It is the duty of agent not to deal on his own account.In case of difficulty, the agent must inform the principal and get instruction from him before taking any steps in facing the difficulty or emergency.An agent is bound to render proper accounts to his principal on demand.It is the duty of an agent to take reasonable care of the property of the principal and not to destroy the sale.It is the duty of an agent to execute the mandate of his principal.Implied Agency:Īn implied agency or agency agreement arises from the conduct, situation, or relationship of the parties. The agency or agency agreement could also be created by words of mouth or by an agreement in writing. The Contract of Agency could be created in any of the subsequent ways
When the agent enters into a contract for himself, then the principal will not be liable.
There shall be an intention of the agent to act on behalf of the principal. Intention to Act on behalf of the principal: The contract shall be with or without consideration. There shall be an agreement between the principal and the agent. Intention to Act on behalf of the principal Agreement:.These are the essentials of Contract of Agency which are given below: Read More: Contract Law Essentials of Contract of Agency: The act done by the agent against the directions and instruction of the principal, the principal shall not be responsible for such an act. It is also important that the agent shall act as per the directions of the principal. In a contract of agency, the principal employs an agent on his own behalf to represent him before a third person with or without consideration to the agent. The contract which creates the connection of principal and agent is known as “ Agency or agency agreement”. The person for whom such act is completed, or who is so represented, is known the Principal.” Section of 182 of the Contract Act,1872 defines the term Agent and Principal as “An agent is a person employed to do any act for another or to represent another in dealings with third persons.
Related posts: Contract of Agency and Its Essentials:Ĭontract of Agency is a two-party relationship in which one person acts as representative to the other in business dealing in order to create contractual relations between that other and third person.Īn agency may be created to perform any act which the creator of the agency himself could lawfully do.Termination/ Revocation of Agency or Agency Agreement:.Intention to Act on behalf of the principal:.
0 kommentar(er)
