Contract Of Agency Ppt Mba p1t73

Agency A person who has capacity to contract may enter into a contract with another 1) Either by himself 2)Through another person

• An “Agent” is a person employed to do any act for another or represent another in is dealings with third person • The function of an agent is to bring his principal into connectional relations with third parties. The agent is merely a connecting link between the principal and third parties .

Essentials relationship of Agency 1) Agreement between the principal and the agent 2) Intention of agent to act on behalf of the principal

Kinds of Agents A)

1)Special Agent 2)General Agent 3)Universal Agent B) Mercantile Agent 1) Factor 2) Auctioneer 3) Broker 4)Commission Agent

Duties of an Agent 1) To Carry out the work under taken according to the direction given by the principal 2) To carry out work with reasonable care and diligence 3) To render s to the principal 4) To communicate with the principal in case of difficulty

5) Not to deal on is on : if A acts without the knowledge of P a) P may repudiate the contract b) Claim benefit 6) To Pay sum received for the P 7) To protect and preserve the interests of the P in case of his death or insolvency

8)Not to use information obtained in the course of agency against the P 9)Not to make secret profit from agency 10) Not to set up an adverse title conversion 11) Not to put himself in a position where interest and duty conflict

Rights of an Agent 1) 2) 3) 4) 5) 6)

Rights of a retainer Rights of receive remuneration Rights of lien Rights of indemnification Rights of compensation Rights to stoppage in transit

Duties of Principal 1) To indemnify the agent against the consequences of at lawful acts 2) To indemnify the agent against the consequences of its done in good faith 3) To indemnify agent for injury caused by principals neglect 4) To pay the agent the commission is other remuneration agreed.

Rights of the Principal 1)To recover damages 2)To obtain an of secret profits recover them and resist a claim of remuneration 3) To resist agents claim for indemnity

Creation of Agency A) Agency by Express Agreement B) Agency by Implied Agreement 1) inferred by circumstance 2) Things spoken / written

Implied agency includes a) Agency by estoppel b) Agency by holding out( positive or affirmative act) c) Agency by Necessity i) Agent may exceed his authority ii) A person entrusted with another’s property iii) Husband and Wife

C) Agency by Ratification Requisites of valid ratification :1) The A must purport to act as agent for a principal who is in contemplation 2) The P must be in existence at the time of contract (Kelner * Bayter)

3)The P must have contractual capacity both at the time of contract and at the time of ratification 4) Ratification must be with full knowledge of facts 5) Ratification must be done within a reasonable time 6) The act to be ratified must be lawful and not void or illegal

7) The whole transaction must be ratified 8) Ratification must be communicated 9)Ratification can be of the acts which the P have power the to do . 10) Ratification should not put third party to damage 11) Ratification relates back to the date of the act of the A