Contract of Agency

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Agent

Principal

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Appointed Servant by Master Agent principal Does not represent master Agent represents principal Has to act according to Orders according Has to actof master to instructions of Acts under direct principal control & supervision of master Does not acts under direct control & No authority supervision

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Creation of Agency

By Express agreement By Implied agreement By Estoppel By Holding out By Necessity When an agent exceeds his authority When a person is entrusted with anothers property

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Essentials of ratification: Existence of principal Capacity of the parties Full knowledge of facts Ratification of whole transaction Unauthorized act can not be ratified. Ratification must be done within reasonable time It must be communicated to the parties

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Classification of Agent
a.

Special Agent General Agent Universal Agent Co Agent Substituted agent Factors Brokers

b.

c.

d.

e.

f.

g.

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h.

Auctioneers Commission agent Del credere agent Forwarding agent Clearing agent Indenting Agent

i.

j.

k.

l.

m.

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Agents authority

Actual Ostensible In Emergency Delegation of Authority Delegatus non protest delegare

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Rights of Agent to his principal

Right to do all lawful things Right in emergency Right to appoint sub agent, substitute agent Right to renounce agency Right to receive remuneration Right to receive compensation

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Right of retainer Right of lien Right of indemnification (legal acts) Right of stoppage Right of compensation for injury

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Duties of Agent

Duty to conduct business according to instruction of principal Duty on termination of agency Duty to conduct work with care, skill Duty to render accounts properly Duty not to delegate his authority Duty to communicate with principal

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Duty not to deal on his account Duty not to earn or make secret profit Duty not to use information obtained Duty to pay sums received for the principal Not to set up an advance title Duty in naming an agent

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Liabilities of Agent

In respect of damages & misconduct Personal liability of agent Liability for wrongful acts Liability for sub agents act

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Rights of principal to his agent

Right to demand accounts Right to repudiate contract Right to benefits gained Right to recover damages Right to refuse remuneration Right to revoke agents authority Right to ratify

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Duties of Principal

To pay remuneration &dues to agent Duty to identify his agent To compensate agent

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Liability of the Principal

In respect of contract entered by agent When notice is given to agent When he induces 3rd parties On account of agents misrepresentation

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Termination of Agency

By the act of parties

By the operations of law

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THANK YOU