Ch 2 Contracts Of Agency

Contracts of Agency PUTTU GURU PRASAD INC GUNTUR

Creation of agency  

 

Expressed Either words spoken or written Implied Either by circumstances or in the ordinary course of business

Types of Agency     

By By By By By

Estoppel Necessity Emergency Ratification Operation of Law

Types of Mercantile agents Mercantile agents Factors Commission agents Del credere agents Brokers

Auctioneers

Rights and duties Duties Of Agents 1.Act according to directions 2.With skill 3.Proper account 4.Use reasonable diligence 5.Not to set up adverse title 6. Duty to pay the sums received 7.Protect the principal’s interest 8.Not to use confidential information against the principal 9.Not to make secret profit 10.Duty and his personal interest not to come into conflict 11.Not to delegate his authority( delegatus non potest delegare) 

Rights of Agent    

e) f)

Right to retain certain sums Receive remuneration Right to lien Employer bound to indemnify the agents loss. Right to receive compensation B) Right to stoppage in transit

Right and duties of principal Right to repudiate  To claim the benefit from the agent  Receive damages  Resist the agent’s claim for indemnity Duties of the principal To indemnify all the lawful acts of the agent To indemnify the agent against the consequences for acts done in good faith To compensate for injury to agent 

Termination of agency       



By agreement By revocation Renouncing the agency by agent By the business being complete Death or unsoundness of the principal or agent By adjudication of insolvency of the principal Irrevocable agency- When interest is coupled with the transfer of agency Notice to the party or the third party terminates the agency or its effect