“An agent is a person employed to do any act for another or to represent another in dealing with third persons. The person for whom such act is done or who is so represented, is called the principal.”
Contract Of Agency
Definition
Of Agent And Principal
(Sec. 182) “An agent is a person employed to do any
act for another or to represent another in dealing with third persons. The
person for whom such act is done or who is so represented, is called the
principal.”
Test of Agency: The true test of agency is the
authority that one person possesses to create contractual relationship between
the person he is representing and the person to whom he represents. Where a
person is in the habit of advising another in business dealings he does not
become the agent of the other.
Agent and Servant
A servant is a person who acts
under the direct control and supervision of his master while an agent does not.
“A principal has the right to direct what the agent has to do; but a master has
not only that right but also the right to say how it is to be
done” An agent is, therefore, sometimes described as ‘Superior Servant’. An
agent binds the principal with the third parties but a servant does not create
relations between his master and third persons. Who may employ agent?
(Sec. 183), “Any person who is of the age of
majority according to the law to which he is subject, and who is of sound mind,
may employ an agent.” “Whatever a person can do personally he can do through an
agent.” Thus a guardian of a minor can appoint an agent for the minor. Who may be an agent?
A minor or even a person of
unsound mind can act as agents but they would not be responsible to the
principal or to the third parties in cases where a person competent to contract
would have been responsible. Consideration
for the contract of agency: (Sec.
185) “No consideration is necessary
to create an agency.” Principal’s agreement to be represented by the agent is
deemed to be sufficient detriment to support the promise by the agent to act as
such and be liable to the principal for negligence. Tags : Business Environment and Law-Performance And Discharge Of Contracts
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