law 2 mark.docx

8/14/2019 LAW 2 MARK.docx

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1. Define agency?

According to section 182 of the contract act, ‘an agent is a person employed to do any

act for another person, or to represent another in his dealings with third persons. The person

for whom such an act is done or who is so represented is called the principal’.

2. What are the essentials for an agency?

Intention and power to act on behalf of he principal. The Capacity of the party. Consideration is not necessary.

3. What are the modes of creating an agency?

The law recognizes various modes to create a contract of agency, namely,

Agency by express agreement Agency by implied agreement Agency by ratification Agency by operation of law

4. What are the forms that implied agency would take?

The forms that implied agency would take are as follows:

Agency by estoppels Agency by holding cut Agency by necessity

5. What are the principles that determine the scope and extent of an agent?

Agent’s authority in normal circumstances Agent’s authority in an emergency

6. Who is a sub-agent?

Where an agent having authority to delegate further appoints another person to act in

the matter of the agency, the person so appointed is called a ‘sub agent’, provided he/she acts

under the control and supervision of the former. As per section 191, ‘ a sub-agent is a person

employed by, and acting under the control of, original agent in the business of the agency.’



7. What is a substituted agent?

A substituted agent is defined by section 194 thus: ‘where an agent, holding an express

or implied authority to name another person to act for the principal in the business of the

agency, has named another person accordingly, such person is not a sub-agent, but an agentof the principal for such part of the business of the agency as is entrusted to him’.

8. what are the duties of agent for his principal?

An agent has following duties towards principal. They are,

Conducting business in accordance with a lawful and clearly stated instructions of the

principal

Carry out work with normal diligence and skill Render proper accounts in respect of all property and money received and paid out on

behalf of the principal Not to deal on his own account in a business of agency To pay sums received for principal.

9. What are the rights of an agent?

Right to retainer

Right to remuneration Right to lien Right to indemnified against consequences of lawful acts Right to indemnified against consequences of lawful act done in good faith Right to compensation

10. What are the duties of an agent?

Duty to act within the scope of the authority Duty to follow instructions or customers Duty to act with due care and skill Duty to render accounts Duty to communicate Duty to remit sums Fiduciary duty

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