Agency presentation including agent right and duties

Presentation on the special contract topic.

1. 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

2. 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

3. 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.

4. 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)

5. 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

6. 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.

7. 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

8. 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.

9. To recover damages To obtain an account of secret profits Rights of Principal

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

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