Labour Law
Agency-Liability of Principal and Agent
Agency-Liability of Principal and Agent
Ipshita Sinha
NUJS-PGDBL 2012
Sinha.ipshita@gmail.com
Ipshita Sinha
NUJS-PGDBL 2012
Sinha.ipshita@gmail.com
A review of the general concept of Agency, with special focus on the liabilities involved between the parties.
A review of the general concept of Agency, with special focus on the liabilities involved between the parties.
The Law of Agency: General Concepts
Agency Laws comes under the purview of Commercial Law. The Indian Contract Act 1872, Section 182 defines an Agent as “a person employed to do any act for another or to represent another in dealings with third persons”. The other person to whom the agent is employed to is said to be the Principal. The law of agency helps form the different contractual, quasi-contractual relationships and non-contractual agreements that allow an agent to form a legal relationship with a third party on behalf of the principal. Hence, there are three parties involved in laws regarding Agency- Principal, Agent, and Third party. The legislature segregates the relationships between them and regulates them accordingly. The relationship divisions are as follows:- * Principal and Agent * Agents and third parties * Principal and Third parties
The principal which is generally in use for disputes arising under Agency Laws can be expressed by the Latin phrase, “qui facit per alium, facit per se” which in common-man terms mean that a person who acts through another, acts in his/her own interests. It should be borne in mind here that the relationship between the Principal and the agent is fiduciary in nature i.e. it is a relationship based on trust generally. Types of Agency:- * General Agents- Who is designated to execute any kind of transaction for the principal. * Special Agents- Who is designated to execute only a specific kind of transaction for the principal. * Commission
Agency-Liability of Principal and Agent
Ipshita Sinha
NUJS-PGDBL 2012
Sinha.ipshita@gmail.com
Ipshita Sinha
NUJS-PGDBL 2012
Sinha.ipshita@gmail.com
A review of the general concept of Agency, with special focus on the liabilities involved between the parties.
A review of the general concept of Agency, with special focus on the liabilities involved between the parties.
The Law of Agency: General Concepts
Agency Laws comes under the purview of Commercial Law. The Indian Contract Act 1872, Section 182 defines an Agent as “a person employed to do any act for another or to represent another in dealings with third persons”. The other person to whom the agent is employed to is said to be the Principal. The law of agency helps form the different contractual, quasi-contractual relationships and non-contractual agreements that allow an agent to form a legal relationship with a third party on behalf of the principal. Hence, there are three parties involved in laws regarding Agency- Principal, Agent, and Third party. The legislature segregates the relationships between them and regulates them accordingly. The relationship divisions are as follows:- * Principal and Agent * Agents and third parties * Principal and Third parties
The principal which is generally in use for disputes arising under Agency Laws can be expressed by the Latin phrase, “qui facit per alium, facit per se” which in common-man terms mean that a person who acts through another, acts in his/her own interests. It should be borne in mind here that the relationship between the Principal and the agent is fiduciary in nature i.e. it is a relationship based on trust generally. Types of Agency:- * General Agents- Who is designated to execute any kind of transaction for the principal. * Special Agents- Who is designated to execute only a specific kind of transaction for the principal. * Commission