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Law to edit Master subtitle style Clickof Agency (sec.182-238) Quasi Contract Minors Partnership
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Introduction
When people do business, they often deal with each other directly Buyer Seller However, sometimes they deal with each other using a middleman (or representative or intermediary) Buyer Middleman Seller
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Introduction (cont.)
The legal relationship between the middleman and the businessperson is governed by the law of agency
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Definition of Agency
The legal term for a middleman or representative is an agent The person who is represented by the agent is called the principal Therefore, in our example Buyer Middleman Seller If the middleman represents the buyer Principal Agent Seller
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Forms of Agency
There are several different forms of agency A general agent has the power to act for the principal in all business matters A special agent only has the authority of the principal for one transaction A del credere agent guarantees to the principal that if the third party does not pay then the agent will pay.
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Eg McDonalds
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No consideration is necessary to create an agency. [section 185]. Thus, payment of agency commission is not essential to hold appointment of Agent as valid.
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Authority of agent
An agent can act on behalf of Principal and can bind the Principal.
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REMUNERATION TO AGENT
Consideration is not necessary for creation of agency. However, if there is an agreement, an agent is entitled to get remuneration as per contract.
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RIGHTS OF PRINCIPAL
* Recover damages from agent if he disregards directions of Principal * Obtain accounts from Agent * Recover moneys collected by Agent on behalf of Principal * Obtain details of secret profit made by agent and recover it from him * Forfeit remuneration of Agent if he misconducts the business.
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DUTIES OF PRINCIPAL
* Pay remuneration to agent as agreed * Indemnify agent for lawful acts done by him as agent * Indemnify Agent for all acts done by him in good faith * Indemnify agent if he suffers loss due to neglect or lack of skill of Principal.
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DEFINITION:
According to Indian Contract Act 1872, Quasi contract is a transaction in which there is no contract between the parties, the law creates certain rights and obligations between them which are similar to those created by a contract.
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CHARACTERISTICS:
Not made by the desire of the
parties but are created by law of the land. No agreement at all between the parties. The contracts came into being after a party has received a profit or money. 20
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DIFFERENCE BETWEEN
BASIS SIMPLE CONTRACTS Essential IMPLIED CONTRACTS Not essential
According to Section 69, A person who is interested in the payment of money which another is bound by law to pay, or who therefore pays it, is entitled to be reimbursed by the other.
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As per Section 70, When a person lawfully does anything for another person, or delivers anything to him, not intending to do so gratuitously, and such person enjoys the benefit thereof, the latter is bound to make compensation to the former in respect of, or to restore, the thing so done or 24 delivered.
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According to Section 71, A person who finds goods belonging to another, and takes them into his custody, is subject to te same responsibility as a bailee.
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mistake or under coercion: According to Section 72, A person to whom money has been paid or anything delivered by mistake or under coercion, must repay or return it to the person who paid it by mistake or under coercion.
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Rights of a Minors
1. To share profit 2. To have access to accounts 3. To sue 4. To elect to become a partner 5. To elect not to become a partner
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Liabilities of a Minor
1. His share 2. Personal liability 3. Partner by holding out
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Thank You
Prepared by: Jignesh Sutariya edit Master subtitle style Vikas Khoyani Click to Dharmin Bhikadiya Sahil Sherasiya
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