PPT - Law of agency | Business Law - B Com PDF Download

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LAW OF AGENCY 
LAW OF AGENCY 
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LAW OF AGENCY 
LAW OF AGENCY 
Meaning & Definition of Agency
Meaning & Definition of Agency
?
Section 182, 
Section 182, 
“ 
“ 
An agent is a person employed to do any 
An agent is a person employed to do any 
act for another or to represent another in 
act for another or to represent another in 
dealing with third persons. The person for 
dealing with third persons. The person for 
whom such act is done or who is so 
whom such act is done or who is so 
represented, is called the principal”
represented, is called the principal”
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LAW OF AGENCY 
LAW OF AGENCY 
Meaning & Definition of Agency
Meaning & Definition of Agency
?
Section 182, 
Section 182, 
“ 
“ 
An agent is a person employed to do any 
An agent is a person employed to do any 
act for another or to represent another in 
act for another or to represent another in 
dealing with third persons. The person for 
dealing with third persons. The person for 
whom such act is done or who is so 
whom such act is done or who is so 
represented, is called the principal”
represented, is called the principal”
?
The person who delegates the authority is 
The person who delegates the authority is 
known as principal.
known as principal.
?
To whom the power is delegated is known 
To whom the power is delegated is known 
as agent.
as agent.
?
The relationship that is created is known 
The relationship that is created is known 
as agency.
as agency.
?
A person who act in place of another – 
A person who act in place of another – 
Agent
Agent
?
The person on whose behalf he acts - 
The person on whose behalf he acts - 
Principal
Principal
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LAW OF AGENCY 
LAW OF AGENCY 
Meaning & Definition of Agency
Meaning & Definition of Agency
?
Section 182, 
Section 182, 
“ 
“ 
An agent is a person employed to do any 
An agent is a person employed to do any 
act for another or to represent another in 
act for another or to represent another in 
dealing with third persons. The person for 
dealing with third persons. The person for 
whom such act is done or who is so 
whom such act is done or who is so 
represented, is called the principal”
represented, is called the principal”
?
The person who delegates the authority is 
The person who delegates the authority is 
known as principal.
known as principal.
?
To whom the power is delegated is known 
To whom the power is delegated is known 
as agent.
as agent.
?
The relationship that is created is known 
The relationship that is created is known 
as agency.
as agency.
?
A person who act in place of another – 
A person who act in place of another – 
Agent
Agent
?
The person on whose behalf he acts - 
The person on whose behalf he acts - 
Principal
Principal
Features of the contract of agency
Features of the contract of agency
?
Principal is answerable to third parties for 
Principal is answerable to third parties for 
the acts of agent .
the acts of agent .
?
Consideration not necessary – Section 185 
Consideration not necessary – Section 185 
of the act clearly lays down , “ No 
of the act clearly lays down , “ No 
consideration is necessary to create an 
consideration is necessary to create an 
agency”
agency”
?
Principal must be competent to employ an 
Principal must be competent to employ an 
agent – Only a person who is competent 
agent – Only a person who is competent 
to contract can employ an agent. ( Major, 
to contract can employ an agent. ( Major, 
Sound Mind )
Sound Mind )
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LAW OF AGENCY 
LAW OF AGENCY 
Meaning & Definition of Agency
Meaning & Definition of Agency
?
Section 182, 
Section 182, 
“ 
“ 
An agent is a person employed to do any 
An agent is a person employed to do any 
act for another or to represent another in 
act for another or to represent another in 
dealing with third persons. The person for 
dealing with third persons. The person for 
whom such act is done or who is so 
whom such act is done or who is so 
represented, is called the principal”
represented, is called the principal”
?
The person who delegates the authority is 
The person who delegates the authority is 
known as principal.
known as principal.
?
To whom the power is delegated is known 
To whom the power is delegated is known 
as agent.
as agent.
?
The relationship that is created is known 
The relationship that is created is known 
as agency.
as agency.
?
A person who act in place of another – 
A person who act in place of another – 
Agent
Agent
?
The person on whose behalf he acts - 
The person on whose behalf he acts - 
Principal
Principal
Features of the contract of agency
Features of the contract of agency
?
Principal is answerable to third parties for 
Principal is answerable to third parties for 
the acts of agent .
the acts of agent .
?
Consideration not necessary – Section 185 
Consideration not necessary – Section 185 
of the act clearly lays down , “ No 
of the act clearly lays down , “ No 
consideration is necessary to create an 
consideration is necessary to create an 
agency”
agency”
?
Principal must be competent to employ an 
Principal must be competent to employ an 
agent – Only a person who is competent 
agent – Only a person who is competent 
to contract can employ an agent. ( Major, 
to contract can employ an agent. ( Major, 
Sound Mind )
Sound Mind )
?
Agent may not have contractual capacity –
Agent may not have contractual capacity –
   
   
A minor or a person of unsound mind may 
A minor or a person of unsound mind may 
act as an agent & bind the principal to the 
act as an agent & bind the principal to the 
third persons.  
third persons.