*

* Mizanur Rahman
* Abdullah all masum
* Irin sultana
* Salma Nasrin
Dept. of Tourism and Hospitality Management
Faculty of Business Studies
University of Dhaka
*Law of Agency
1
Agent

2 Principal

3 Power of attorney

4 The differences between servant and agent

5 Agent and bailee

6 Methods of creating agency

7 Termination of Agency
• An agent is a
person employed
to do any act for
another or to
represent another
in dealings with
third persons.
The person for whom An agent may be
such act is done or appointed by the
who is so principal executing a
represented is called written and stamped
document. Such a
the principal.
document is called
power of attorney.

Power of Attorney
 Power of
Attorney

General Special
 Agent & Servant Differences………

Agent Servant
An agent is to exercise his authority A servant has to act according
in accordance with the principal’s to the orders of the master in
instructions. every particular.

An agent is appointed and employed to

bring the principal into contractual The servant cannot do that
relationship with third parties

An agent can bind the

A servant cannot do so.
principal to the third parties
The mood of remunerations A servant is generally paid
of an agent may vary through wages

An agent is liable for wrong A master is liable for the

done wrong of his servant.

An agent may work for A whole time servant serves

several principals only one master
 Agent & Bailee Differences…………

Agent An agent may not Bailee

have possession of The bailee has
any goods or possession of goods
properties of the of the bailer
principal.

The bailee has no

power to create any
An agent has that
contractual
authority
relationship with
the third party

Under certain
Agent is already circumstances a
agent bailee may act as an
agent
Method of creating agency

Agency by express agreement

Agency by Implied agreement

Agency by estoppel or by holding out

Agency of necessity

Agency by ratification
 Agency by express agreement

• A contact of agency may be created by

expressed agreement. The agreement may be
either oral or written.

Agency by Implied agreement

• An agency agreement may be implied under

certain circumstances from the conduct of the
parties or the relationship between them
 Agency by Implied agreement
Agency by estoppel or by holding out

There are three possible cases of agency by estoppel:

a A person can be held out as an agent although he

is not actually not so.

A person acting as an agent may be held out as

b having more authority than he actually has.

A person may be held out as agent after he has

c ceased to be so.
 Agency of necessity

Agency is created when the following conditions are fulfilled;

The agent of
It must be There must necessity
impossible to be an actual must act
get the necessity for honestly in
principals acting on his the interest of
instruction behalf . the parties
concerned..
Agency by ratification

• Ratification means the subsequent adoption

and acceptances of an act originally done
without instruction or authority.

• Ratification may be expressed or implied.

Termination of Agency
 Termination

Termination by Termination by
act of parties operation of law
 Termination by act of parties

Compensation
for revocation or
• The principal renunciation • The principal
may, by notice, can’t revoke
revoke the
authority of the • When an agency the authority
agent. The agent is revoked or of the agent
may similarly, by renounced in the some
notice, renounce without cases
the business of sufficient cause,
agency. compensation
must be paid to
Revocation and the injured party Irrevocable
renunciation agency
 Termination by operation of law

The ways are…

• Efflux of time
• Performance of the object
• Determination of subject-matter
• Death or insanity of the principal or agent
• Insolvency of the principal
• The principal becoming an alien enemy
• Termination of the sub-agent’s authority
Agent’s duties to principal
 • Agents duty in conducting principals
business
• Skill and diligence required from agent
• Agents duty to render accounts

The • Agents duty to communicate to

principal
• Agent not to deal on his own account
duties • Principal to get benefit of agent’s
dealings
• Agents duty to pay sums received for
• Principals
• Principals death or insanity
• Miscellaneous
Principal’s duties to agent
 Agent to be
indemnified
against
consequences
Agent to be of acts done in
identified against
consequences of
The good faith

lawful acts
duties
….. Non
liability for
criminal
acts

Compensation
for principal’s
neglect
Agents rights
 • Enforcements of rights
• Agent’s rights of
retainer
• When agent’s
remunerations
becomes due
• Agent not entitled to
Agent’s remuneration for
Right business misconducted
• Agent’s lien
Thanks