Agency Shafeeque

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Shafeeque TM


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DEFNITION OF AGENT &AGENCY

Agent:- is a person employed to do any

act for others or to represent another in

dealings with third person.

The person for whom behalf he act is

known as theprincipal.

The relationship between principal and

agent is known as agency

P A

T

(1)

(2)(3)


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Who can employ an agent? Section 183

Any person who is the age of majority according to the

law to which he is subject and who is of sound mind,may employ an agent.

Who may be an agent?

Section 184As between the principal and third party any person

can act as an agent.


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DIFFERENT KINDS OF AGENCIES

MODES OF CREATING CONTRACT OF AGENCY

BY IMPLIEDAUTHORITY

BY RATIFICATION

BY ESTOPPEL

BY HOLDING OUT

BY NECESSITY

BY OPERATION OFLAW

BY EXPRESS

AUTHORITY


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Different kinds of agencies

Express Agency: S 187A contract of agency may be created by an express

agreement when a principal appoints an agent eitherby words or by writing.

Implied Agency: 187It arises from the conduct , situation or relationship ofparties. It includes

1. Agency by estoppel.

2. Agency by holding out.

3. Agency by necessity.


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Different kinds of agencies(CONT.)

Agency by estoppel:s 237

Where a person by his conduct or statement

induced others to believe that certain person in hisagent, he is estopped from subsequently denying it.

Agency by holding out:

In this case a prior positive or affirmative act on

the part of the principal is required to establish agencysubsequently.


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Agency by necessity:

Sometimes extraordinary require that a person

who is not really an agent should act as an agent ofanother.

Case law:

In Great Northern Railway Vs Swafied.


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Agency by ratification :

It means the subsequent adoption and acceptance

of an act originally done without instruction 0rauthority.

Agency by operation of law:

Some times an agency is arises by operation of

law. When a company is formed, its promoters are itsagents by operation of law.


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Different kind of agentsOn the basis of extend of authority

1.Special agents : A special agent is appointed only for a

particular purpose and he has only authority to act in aparticular transaction.

2.General agents: is one who appointed to represent theprincipal in all matters concerning a particular

business.3.Universal agents: is a person whose authority is

unlimited and he can do anything for his principal.


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Different kind of agents(CONT.)On the basis of nature of work performed.

A)Commercial or mercantile agents: is a person having

authority either to sell goods or consign goods or toraise money on the security of goods. The following aremajor commercial agents.

Banker: act as an agent of the customer when he

collect cheques , drafts, sales of security on behalf ofcustomers.

Broker: is one who negotiate and make contractseither buy or sell goods.


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Different kind of agents(CONT.)

Factor: is entrusted with the possession of goods withan authority to sell ,buy or money on the security.

Auctioneers: is an agent employed by the owner to see

his property publicity by calling on the public to bid forit.

Commission agent: is a person who is employed to docertain act for his principal in return for a commission.

Del credere agent: is one who is consideration of anextra remuneration ,called del credere commissionguarantees the performance of the contract by the otherparty.


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Different kind of agents(CONT.)

B)Non mercantile agents :

Wife.

Attorneys. Advocates.


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SUB AGENT & SUBSTITUTE AGENTSUB AGENT : S 191

A sub agent is a person employed by

and acting under the control of the agent in thebusiness of the agency.

SUBSTITUTE AGENT: S197

A substitute agent is a person ,

appointed by the agent to act for principal in thebusiness of the agency with the knowledge andconsent of the principal.


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Duties of an agent1.To follow the instructions of the principal.

2.To work with reasonable skills and diligence.

3.To render proper account.4.To communicate with the principal in difficult

situation.

5.Not to make any secret profit.

6.Not to deal on his own account.

7.To pay all sum to his principal.

.


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Duties of an agent(CONT.)8.Not to delegate his authority.

9. Not to disclose confidential information supplied to

him by the principal.10. Duty on termination of agency by principals death

or insanity.


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RIGHTS OF AN AGENT Right of retainer.

Right to receive commission.

Right of lien. Right of indemnification.

Right to compensation.

Right of stoppage of goods.


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DUTIES OF PRINCIPALi) Duty to pay remuneration.

ii) Agent to be indemnified.

iii)Duty to indemnify the loss for principals neglect.iv) Agent consequences of the act done good faith.


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Termination of agency.BY ACT OF PARTIES

A)Agreement : An agency like any other contract

may be terminated by the consent of the parties.B)Revocation of authority: Principal may either

expressly or impliedly after giving reasonable notice ,revoke the authority of the agent before it has been

exercised by the latter so as to bind the former.C)Renunciation by the agent: The agent himself

may renounce the agency after giving a reasonablenotice to the principal.


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Termination of agency(CONT.)BY OPERATION OF LAW

Performance of contract.

Expiry of time. Destruction of subject matter.

Death or insanity of either party.

Insolvency of the principal.

Principal becoming an alien enemy.


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CASESI) Mill Street Church v. Hogan 1990

Church hires Bill Hogan to paintthe church building

Bill hires his brother Sam as help.

Sam is injured while painting & seeks

workers compensation

Was Bill Hogan an agent of the church

with implied authority to hire Sam?


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II) Miller Vs McDonalds Corp. (1997)

Fact: Jeni Miller purchase a sandwich formMcDonalds , she suffered a stone in her food .

She sued the franchisor.
http://www.mcdonaldsindia.com/


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Agency Shafeeque