Agency.pptx including the introduction and duties of agent

 An agent is a person employees to do any act for
another or to represent another in dealings with
the third person.
 The contract which create the relationship
between the principal and agent is called agency.
Agency

 Duty to follow principal’s directions or customs
(sec.211)- the first duty of every agent is to act
within the scope of the authority conferred upon
him and perform the agency work acc. To
direction given by them.
Like where the principal instructed the agent to
warehouse the goods at a particular place and
agent warehoused at different location, and they
were destroyed by fire, agent was liable for the
loss.
Duties of Agent

 Duty to carry out the work with reasonable skill
and diligence (sec.212)- the agent must conduct
the business of agency with as much skill as it
generally possessed by persons engaged In
similar business and use best of his skill.
 Duty to render accounts (sec.213)- it is the duty of
an agent to keep proper accounts of his
principal’s money and render them to him on
demand.

 Duty to communicate (sec.214)- in case of any
difficulty it is the duty of agent to communicate
with his principal and obtain his instruction.
 Duty not to make any profit out of his agency
expect his remuneration (sec217 and 218)-
 Duty on termination of agency by principal’
death or any other issue (sec.209)
 Duty not to delegate authority (sec190)

 Right to receive remuneration (sec.219 and 220)-
The agent is entitled to receive his agreed
remuneration. It is imp. That agent can claim
remuneration once he has completed his work.
 Right of retainer (sec.217)- an agent has the right
to retain, out of any sums received on account of
the principal, all money due to himself in respect
of his remuneration or advance made incurred
by him in conduction the business.
Right of agent

 Right to lien (sec.221)- an agent has the right to
retain the goods, property and papers, of the
principal, until the amount due to himself for
commission has been paid to him.
 Right to compensation (sec.225)- the agent has a
right to be compensated for injuries sustained by
him due to the principal neglect.
 Right of stoppage of goods in transit- an agent
has a right to stop the goods in transit to the
principal if he has bought goods with his own
money or principal has become insolvent.

 To indemnify the agent against the consequences
of all lawful acts- Acc. To sec.222 if the agent
suffer a loss as a result of such performance it is
the principal’s duty to compensate him for the
loss.
 To indemnify the agent against the consequences
of acts done in good faith- Acc. To sec.223 if the
agent acts in good faith on behalf of the
principal, and the interest of third party are
damages as a result it is the principal duty to
indemnify the agent.
Duties of Principal

 To indemnify the agent for injury- Acc. To sec.225
if an injury is caused to the agent because of
neglect on the part of principal.
 To pay remuneration and other expenses- Sec.
217,219 and 220.

 To recover damages
 To obtain an account of secret profits
Rights of Principal

 The term Irrevocable agency means an agency
which can not be revoke and terminated by the
principal.
Irrevocable agency

 1. Agency is coupled with Interest.
 2. Agent had partially exercise his authority.
 3. Agent had incurred a personal Liability.

Agency.pptx including the introduction and duties of agent

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