Question Description
Direction:The question is based on the reasoning and arguments, or facts and principles set out in the passage. Some of these principles may not be true in the real or legal sense, yet you must conclusively assume that they are true for the purpose. Please answer the question on the basis of what is stated or implied in the passage. Do not rely on any principle of law other than the ones supplied to you, and do not assume any facts other than those supplied to you when answering the question. Please choose the option that most accurately and comprehensively answers the question.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 person for whom such act is done or who is so represented is called the principal. But every person, who does something for the other is not necessarily an agent; for example, a contractor employed to carry on some construction work is not necessarily the agent of the principal. A servant may be technically an agent of the master but he is not strictly an agent in as much as he has to act entirely under the orders of the master as to how anything needs to be done. An agent has more authority and independence to function in comparison to that of a servant.An agent is a person, who acts for and on behalf of the principal and under the latters express or implied authority and his acts done within such authority are binding on his principal and for his such acts, the principal is liable to the party with whom the agent has dealings as such agent.An agent has authority to do all acts and things, which are expressly given to him but he has also implied authority to do all acts which are incidental to the main powers. S. 189 of the Indian Contract Act, 1872 provides that an agent also has powers to do all acts for the purpose of protecting the principal in emergency as would be done by a man of prudence in his own case. An agency can be granted orally or through writing and it can also be created through subsequent ratification of the acts done by one person for the other.A sub-agent is a person employed by and acting under the control of the original agent in the agency business. An agent cannot lawfully employ another person to perform acts which he has expressly or impliedly undertaken to perform personally unless by ordinary custom of trade a sub-agent may or from the nature of the agency a sub-agent must be employed. The principal is liable for the acts of the sub-agent.A sub-agent cannot be appointed ordinarily by the agent without the express or implied consent of the principal. When a sub-agent is appointed with the consent of the principal, he is, as regards the third persons, represented by the sub-agent also and is bound by and responsible for the acts of the sub-agent as if he were an agent ordinarily appointed by the principal. The principal is not responsible for the acts of the sub-agent if the sub-agent is appointed without his consent.Q.ICIT Bank employed Mr Rajan to manage the deposits as a contract employee. Mr Rajans job was to take deposits from certain people and deposit it to the bank. One day, Mr Rajan received a huge deposit and instead of depositing it in the bank, he ran away with it. Now, the customer wants to pursue legal action against the bank. Decide.a)Mr Rajan is an agent of the ICIT Bank. Hence, the bank will be liable.b)Mr Rajan is just an employee and not an agent of ICIT bank. Hence, the bank will not be liable.c)Mr Rajan is the one liable for stealing the money and not the bank.d)None of the aboveCorrect answer is option 'B'. Can you explain this answer? for CLAT 2025 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about Direction:The question is based on the reasoning and arguments, or facts and principles set out in the passage. Some of these principles may not be true in the real or legal sense, yet you must conclusively assume that they are true for the purpose. Please answer the question on the basis of what is stated or implied in the passage. Do not rely on any principle of law other than the ones supplied to you, and do not assume any facts other than those supplied to you when answering the question. Please choose the option that most accurately and comprehensively answers the question.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 person for whom such act is done or who is so represented is called the principal. But every person, who does something for the other is not necessarily an agent; for example, a contractor employed to carry on some construction work is not necessarily the agent of the principal. A servant may be technically an agent of the master but he is not strictly an agent in as much as he has to act entirely under the orders of the master as to how anything needs to be done. An agent has more authority and independence to function in comparison to that of a servant.An agent is a person, who acts for and on behalf of the principal and under the latters express or implied authority and his acts done within such authority are binding on his principal and for his such acts, the principal is liable to the party with whom the agent has dealings as such agent.An agent has authority to do all acts and things, which are expressly given to him but he has also implied authority to do all acts which are incidental to the main powers. S. 189 of the Indian Contract Act, 1872 provides that an agent also has powers to do all acts for the purpose of protecting the principal in emergency as would be done by a man of prudence in his own case. An agency can be granted orally or through writing and it can also be created through subsequent ratification of the acts done by one person for the other.A sub-agent is a person employed by and acting under the control of the original agent in the agency business. An agent cannot lawfully employ another person to perform acts which he has expressly or impliedly undertaken to perform personally unless by ordinary custom of trade a sub-agent may or from the nature of the agency a sub-agent must be employed. The principal is liable for the acts of the sub-agent.A sub-agent cannot be appointed ordinarily by the agent without the express or implied consent of the principal. When a sub-agent is appointed with the consent of the principal, he is, as regards the third persons, represented by the sub-agent also and is bound by and responsible for the acts of the sub-agent as if he were an agent ordinarily appointed by the principal. The principal is not responsible for the acts of the sub-agent if the sub-agent is appointed without his consent.Q.ICIT Bank employed Mr Rajan to manage the deposits as a contract employee. Mr Rajans job was to take deposits from certain people and deposit it to the bank. One day, Mr Rajan received a huge deposit and instead of depositing it in the bank, he ran away with it. Now, the customer wants to pursue legal action against the bank. Decide.a)Mr Rajan is an agent of the ICIT Bank. Hence, the bank will be liable.b)Mr Rajan is just an employee and not an agent of ICIT bank. Hence, the bank will not be liable.c)Mr Rajan is the one liable for stealing the money and not the bank.d)None of the aboveCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CLAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction:The question is based on the reasoning and arguments, or facts and principles set out in the passage. Some of these principles may not be true in the real or legal sense, yet you must conclusively assume that they are true for the purpose. Please answer the question on the basis of what is stated or implied in the passage. Do not rely on any principle of law other than the ones supplied to you, and do not assume any facts other than those supplied to you when answering the question. Please choose the option that most accurately and comprehensively answers the question.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 person for whom such act is done or who is so represented is called the principal. But every person, who does something for the other is not necessarily an agent; for example, a contractor employed to carry on some construction work is not necessarily the agent of the principal. A servant may be technically an agent of the master but he is not strictly an agent in as much as he has to act entirely under the orders of the master as to how anything needs to be done. An agent has more authority and independence to function in comparison to that of a servant.An agent is a person, who acts for and on behalf of the principal and under the latters express or implied authority and his acts done within such authority are binding on his principal and for his such acts, the principal is liable to the party with whom the agent has dealings as such agent.An agent has authority to do all acts and things, which are expressly given to him but he has also implied authority to do all acts which are incidental to the main powers. S. 189 of the Indian Contract Act, 1872 provides that an agent also has powers to do all acts for the purpose of protecting the principal in emergency as would be done by a man of prudence in his own case. An agency can be granted orally or through writing and it can also be created through subsequent ratification of the acts done by one person for the other.A sub-agent is a person employed by and acting under the control of the original agent in the agency business. An agent cannot lawfully employ another person to perform acts which he has expressly or impliedly undertaken to perform personally unless by ordinary custom of trade a sub-agent may or from the nature of the agency a sub-agent must be employed. The principal is liable for the acts of the sub-agent.A sub-agent cannot be appointed ordinarily by the agent without the express or implied consent of the principal. When a sub-agent is appointed with the consent of the principal, he is, as regards the third persons, represented by the sub-agent also and is bound by and responsible for the acts of the sub-agent as if he were an agent ordinarily appointed by the principal. The principal is not responsible for the acts of the sub-agent if the sub-agent is appointed without his consent.Q.ICIT Bank employed Mr Rajan to manage the deposits as a contract employee. Mr Rajans job was to take deposits from certain people and deposit it to the bank. One day, Mr Rajan received a huge deposit and instead of depositing it in the bank, he ran away with it. Now, the customer wants to pursue legal action against the bank. Decide.a)Mr Rajan is an agent of the ICIT Bank. Hence, the bank will be liable.b)Mr Rajan is just an employee and not an agent of ICIT bank. Hence, the bank will not be liable.c)Mr Rajan is the one liable for stealing the money and not the bank.d)None of the aboveCorrect answer is option 'B'. Can you explain this answer?.

Solutions for Direction:The question is based on the reasoning and arguments, or facts and principles set out in the passage. Some of these principles may not be true in the real or legal sense, yet you must conclusively assume that they are true for the purpose. Please answer the question on the basis of what is stated or implied in the passage. Do not rely on any principle of law other than the ones supplied to you, and do not assume any facts other than those supplied to you when answering the question. Please choose the option that most accurately and comprehensively answers the question.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 person for whom such act is done or who is so represented is called the principal. But every person, who does something for the other is not necessarily an agent; for example, a contractor employed to carry on some construction work is not necessarily the agent of the principal. A servant may be technically an agent of the master but he is not strictly an agent in as much as he has to act entirely under the orders of the master as to how anything needs to be done. An agent has more authority and independence to function in comparison to that of a servant.An agent is a person, who acts for and on behalf of the principal and under the latters express or implied authority and his acts done within such authority are binding on his principal and for his such acts, the principal is liable to the party with whom the agent has dealings as such agent.An agent has authority to do all acts and things, which are expressly given to him but he has also implied authority to do all acts which are incidental to the main powers. S. 189 of the Indian Contract Act, 1872 provides that an agent also has powers to do all acts for the purpose of protecting the principal in emergency as would be done by a man of prudence in his own case. An agency can be granted orally or through writing and it can also be created through subsequent ratification of the acts done by one person for the other.A sub-agent is a person employed by and acting under the control of the original agent in the agency business. An agent cannot lawfully employ another person to perform acts which he has expressly or impliedly undertaken to perform personally unless by ordinary custom of trade a sub-agent may or from the nature of the agency a sub-agent must be employed. The principal is liable for the acts of the sub-agent.A sub-agent cannot be appointed ordinarily by the agent without the express or implied consent of the principal. When a sub-agent is appointed with the consent of the principal, he is, as regards the third persons, represented by the sub-agent also and is bound by and responsible for the acts of the sub-agent as if he were an agent ordinarily appointed by the principal. The principal is not responsible for the acts of the sub-agent if the sub-agent is appointed without his consent.Q.ICIT Bank employed Mr Rajan to manage the deposits as a contract employee. Mr Rajans job was to take deposits from certain people and deposit it to the bank. One day, Mr Rajan received a huge deposit and instead of depositing it in the bank, he ran away with it. Now, the customer wants to pursue legal action against the bank. Decide.a)Mr Rajan is an agent of the ICIT Bank. Hence, the bank will be liable.b)Mr Rajan is just an employee and not an agent of ICIT bank. Hence, the bank will not be liable.c)Mr Rajan is the one liable for stealing the money and not the bank.d)None of the aboveCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CLAT. Download more important topics, notes, lectures and mock test series for CLAT Exam by signing up for free.

Here you can find the meaning of Direction:The question is based on the reasoning and arguments, or facts and principles set out in the passage. Some of these principles may not be true in the real or legal sense, yet you must conclusively assume that they are true for the purpose. Please answer the question on the basis of what is stated or implied in the passage. Do not rely on any principle of law other than the ones supplied to you, and do not assume any facts other than those supplied to you when answering the question. Please choose the option that most accurately and comprehensively answers the question.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 person for whom such act is done or who is so represented is called the principal. But every person, who does something for the other is not necessarily an agent; for example, a contractor employed to carry on some construction work is not necessarily the agent of the principal. A servant may be technically an agent of the master but he is not strictly an agent in as much as he has to act entirely under the orders of the master as to how anything needs to be done. An agent has more authority and independence to function in comparison to that of a servant.An agent is a person, who acts for and on behalf of the principal and under the latters express or implied authority and his acts done within such authority are binding on his principal and for his such acts, the principal is liable to the party with whom the agent has dealings as such agent.An agent has authority to do all acts and things, which are expressly given to him but he has also implied authority to do all acts which are incidental to the main powers. S. 189 of the Indian Contract Act, 1872 provides that an agent also has powers to do all acts for the purpose of protecting the principal in emergency as would be done by a man of prudence in his own case. An agency can be granted orally or through writing and it can also be created through subsequent ratification of the acts done by one person for the other.A sub-agent is a person employed by and acting under the control of the original agent in the agency business. An agent cannot lawfully employ another person to perform acts which he has expressly or impliedly undertaken to perform personally unless by ordinary custom of trade a sub-agent may or from the nature of the agency a sub-agent must be employed. The principal is liable for the acts of the sub-agent.A sub-agent cannot be appointed ordinarily by the agent without the express or implied consent of the principal. When a sub-agent is appointed with the consent of the principal, he is, as regards the third persons, represented by the sub-agent also and is bound by and responsible for the acts of the sub-agent as if he were an agent ordinarily appointed by the principal. The principal is not responsible for the acts of the sub-agent if the sub-agent is appointed without his consent.Q.ICIT Bank employed Mr Rajan to manage the deposits as a contract employee. Mr Rajans job was to take deposits from certain people and deposit it to the bank. One day, Mr Rajan received a huge deposit and instead of depositing it in the bank, he ran away with it. Now, the customer wants to pursue legal action against the bank. Decide.a)Mr Rajan is an agent of the ICIT Bank. Hence, the bank will be liable.b)Mr Rajan is just an employee and not an agent of ICIT bank. Hence, the bank will not be liable.c)Mr Rajan is the one liable for stealing the money and not the bank.d)None of the aboveCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Direction:The question is based on the reasoning and arguments, or facts and principles set out in the passage. Some of these principles may not be true in the real or legal sense, yet you must conclusively assume that they are true for the purpose. Please answer the question on the basis of what is stated or implied in the passage. Do not rely on any principle of law other than the ones supplied to you, and do not assume any facts other than those supplied to you when answering the question. Please choose the option that most accurately and comprehensively answers the question.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 person for whom such act is done or who is so represented is called the principal. But every person, who does something for the other is not necessarily an agent; for example, a contractor employed to carry on some construction work is not necessarily the agent of the principal. A servant may be technically an agent of the master but he is not strictly an agent in as much as he has to act entirely under the orders of the master as to how anything needs to be done. An agent has more authority and independence to function in comparison to that of a servant.An agent is a person, who acts for and on behalf of the principal and under the latters express or implied authority and his acts done within such authority are binding on his principal and for his such acts, the principal is liable to the party with whom the agent has dealings as such agent.An agent has authority to do all acts and things, which are expressly given to him but he has also implied authority to do all acts which are incidental to the main powers. S. 189 of the Indian Contract Act, 1872 provides that an agent also has powers to do all acts for the purpose of protecting the principal in emergency as would be done by a man of prudence in his own case. An agency can be granted orally or through writing and it can also be created through subsequent ratification of the acts done by one person for the other.A sub-agent is a person employed by and acting under the control of the original agent in the agency business. An agent cannot lawfully employ another person to perform acts which he has expressly or impliedly undertaken to perform personally unless by ordinary custom of trade a sub-agent may or from the nature of the agency a sub-agent must be employed. The principal is liable for the acts of the sub-agent.A sub-agent cannot be appointed ordinarily by the agent without the express or implied consent of the principal. When a sub-agent is appointed with the consent of the principal, he is, as regards the third persons, represented by the sub-agent also and is bound by and responsible for the acts of the sub-agent as if he were an agent ordinarily appointed by the principal. The principal is not responsible for the acts of the sub-agent if the sub-agent is appointed without his consent.Q.ICIT Bank employed Mr Rajan to manage the deposits as a contract employee. Mr Rajans job was to take deposits from certain people and deposit it to the bank. One day, Mr Rajan received a huge deposit and instead of depositing it in the bank, he ran away with it. Now, the customer wants to pursue legal action against the bank. Decide.a)Mr Rajan is an agent of the ICIT Bank. Hence, the bank will be liable.b)Mr Rajan is just an employee and not an agent of ICIT bank. Hence, the bank will not be liable.c)Mr Rajan is the one liable for stealing the money and not the bank.d)None of the aboveCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for Direction:The question is based on the reasoning and arguments, or facts and principles set out in the passage. Some of these principles may not be true in the real or legal sense, yet you must conclusively assume that they are true for the purpose. Please answer the question on the basis of what is stated or implied in the passage. Do not rely on any principle of law other than the ones supplied to you, and do not assume any facts other than those supplied to you when answering the question. Please choose the option that most accurately and comprehensively answers the question.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 person for whom such act is done or who is so represented is called the principal. But every person, who does something for the other is not necessarily an agent; for example, a contractor employed to carry on some construction work is not necessarily the agent of the principal. A servant may be technically an agent of the master but he is not strictly an agent in as much as he has to act entirely under the orders of the master as to how anything needs to be done. An agent has more authority and independence to function in comparison to that of a servant.An agent is a person, who acts for and on behalf of the principal and under the latters express or implied authority and his acts done within such authority are binding on his principal and for his such acts, the principal is liable to the party with whom the agent has dealings as such agent.An agent has authority to do all acts and things, which are expressly given to him but he has also implied authority to do all acts which are incidental to the main powers. S. 189 of the Indian Contract Act, 1872 provides that an agent also has powers to do all acts for the purpose of protecting the principal in emergency as would be done by a man of prudence in his own case. An agency can be granted orally or through writing and it can also be created through subsequent ratification of the acts done by one person for the other.A sub-agent is a person employed by and acting under the control of the original agent in the agency business. An agent cannot lawfully employ another person to perform acts which he has expressly or impliedly undertaken to perform personally unless by ordinary custom of trade a sub-agent may or from the nature of the agency a sub-agent must be employed. The principal is liable for the acts of the sub-agent.A sub-agent cannot be appointed ordinarily by the agent without the express or implied consent of the principal. When a sub-agent is appointed with the consent of the principal, he is, as regards the third persons, represented by the sub-agent also and is bound by and responsible for the acts of the sub-agent as if he were an agent ordinarily appointed by the principal. The principal is not responsible for the acts of the sub-agent if the sub-agent is appointed without his consent.Q.ICIT Bank employed Mr Rajan to manage the deposits as a contract employee. Mr Rajans job was to take deposits from certain people and deposit it to the bank. One day, Mr Rajan received a huge deposit and instead of depositing it in the bank, he ran away with it. Now, the customer wants to pursue legal action against the bank. Decide.a)Mr Rajan is an agent of the ICIT Bank. Hence, the bank will be liable.b)Mr Rajan is just an employee and not an agent of ICIT bank. Hence, the bank will not be liable.c)Mr Rajan is the one liable for stealing the money and not the bank.d)None of the aboveCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of Direction:The question is based on the reasoning and arguments, or facts and principles set out in the passage. Some of these principles may not be true in the real or legal sense, yet you must conclusively assume that they are true for the purpose. Please answer the question on the basis of what is stated or implied in the passage. Do not rely on any principle of law other than the ones supplied to you, and do not assume any facts other than those supplied to you when answering the question. Please choose the option that most accurately and comprehensively answers the question.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 person for whom such act is done or who is so represented is called the principal. But every person, who does something for the other is not necessarily an agent; for example, a contractor employed to carry on some construction work is not necessarily the agent of the principal. A servant may be technically an agent of the master but he is not strictly an agent in as much as he has to act entirely under the orders of the master as to how anything needs to be done. An agent has more authority and independence to function in comparison to that of a servant.An agent is a person, who acts for and on behalf of the principal and under the latters express or implied authority and his acts done within such authority are binding on his principal and for his such acts, the principal is liable to the party with whom the agent has dealings as such agent.An agent has authority to do all acts and things, which are expressly given to him but he has also implied authority to do all acts which are incidental to the main powers. S. 189 of the Indian Contract Act, 1872 provides that an agent also has powers to do all acts for the purpose of protecting the principal in emergency as would be done by a man of prudence in his own case. An agency can be granted orally or through writing and it can also be created through subsequent ratification of the acts done by one person for the other.A sub-agent is a person employed by and acting under the control of the original agent in the agency business. An agent cannot lawfully employ another person to perform acts which he has expressly or impliedly undertaken to perform personally unless by ordinary custom of trade a sub-agent may or from the nature of the agency a sub-agent must be employed. The principal is liable for the acts of the sub-agent.A sub-agent cannot be appointed ordinarily by the agent without the express or implied consent of the principal. When a sub-agent is appointed with the consent of the principal, he is, as regards the third persons, represented by the sub-agent also and is bound by and responsible for the acts of the sub-agent as if he were an agent ordinarily appointed by the principal. The principal is not responsible for the acts of the sub-agent if the sub-agent is appointed without his consent.Q.ICIT Bank employed Mr Rajan to manage the deposits as a contract employee. Mr Rajans job was to take deposits from certain people and deposit it to the bank. One day, Mr Rajan received a huge deposit and instead of depositing it in the bank, he ran away with it. Now, the customer wants to pursue legal action against the bank. Decide.a)Mr Rajan is an agent of the ICIT Bank. Hence, the bank will be liable.b)Mr Rajan is just an employee and not an agent of ICIT bank. Hence, the bank will not be liable.c)Mr Rajan is the one liable for stealing the money and not the bank.d)None of the aboveCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Direction:The question is based on the reasoning and arguments, or facts and principles set out in the passage. Some of these principles may not be true in the real or legal sense, yet you must conclusively assume that they are true for the purpose. Please answer the question on the basis of what is stated or implied in the passage. Do not rely on any principle of law other than the ones supplied to you, and do not assume any facts other than those supplied to you when answering the question. Please choose the option that most accurately and comprehensively answers the question.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 person for whom such act is done or who is so represented is called the principal. But every person, who does something for the other is not necessarily an agent; for example, a contractor employed to carry on some construction work is not necessarily the agent of the principal. A servant may be technically an agent of the master but he is not strictly an agent in as much as he has to act entirely under the orders of the master as to how anything needs to be done. An agent has more authority and independence to function in comparison to that of a servant.An agent is a person, who acts for and on behalf of the principal and under the latters express or implied authority and his acts done within such authority are binding on his principal and for his such acts, the principal is liable to the party with whom the agent has dealings as such agent.An agent has authority to do all acts and things, which are expressly given to him but he has also implied authority to do all acts which are incidental to the main powers. S. 189 of the Indian Contract Act, 1872 provides that an agent also has powers to do all acts for the purpose of protecting the principal in emergency as would be done by a man of prudence in his own case. An agency can be granted orally or through writing and it can also be created through subsequent ratification of the acts done by one person for the other.A sub-agent is a person employed by and acting under the control of the original agent in the agency business. An agent cannot lawfully employ another person to perform acts which he has expressly or impliedly undertaken to perform personally unless by ordinary custom of trade a sub-agent may or from the nature of the agency a sub-agent must be employed. The principal is liable for the acts of the sub-agent.A sub-agent cannot be appointed ordinarily by the agent without the express or implied consent of the principal. When a sub-agent is appointed with the consent of the principal, he is, as regards the third persons, represented by the sub-agent also and is bound by and responsible for the acts of the sub-agent as if he were an agent ordinarily appointed by the principal. The principal is not responsible for the acts of the sub-agent if the sub-agent is appointed without his consent.Q.ICIT Bank employed Mr Rajan to manage the deposits as a contract employee. Mr Rajans job was to take deposits from certain people and deposit it to the bank. One day, Mr Rajan received a huge deposit and instead of depositing it in the bank, he ran away with it. Now, the customer wants to pursue legal action against the bank. Decide.a)Mr Rajan is an agent of the ICIT Bank. Hence, the bank will be liable.b)Mr Rajan is just an employee and not an agent of ICIT bank. Hence, the bank will not be liable.c)Mr Rajan is the one liable for stealing the money and not the bank.d)None of the aboveCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice CLAT tests.