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Directions: Read the following passage and answer 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.
An agent is a person, who acts for and on behalf of the principal and under the latter's 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.
[Extracted with edits and revisions from Agency- Finer details in Indian Context, blog by netlawman]
Q. Under what circumstances is a principal liable for the acts of a sub-agent, as mentioned in the passage?
  • a)
    The principal is always liable for the acts of a sub-agent, regardless of the situation.
  • b)
    The principal is only liable if the sub-agent is appointed with the express consent of the principal.
  • c)
    The principal is never liable for the acts of a sub-agent, even with their consent.
  • d)
    The principal is liable for the acts of the sub-agent when the sub-agent is appointed with or without their consent.
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Directions: Read the following passage and answer the question.Section...
The passage explains that a principal is liable for the acts of a sub-agent if the sub-agent is appointed with the consent of the principal. In such cases, the principal is held responsible for the actions of both the original agent and the sub-agent, as if they were agents ordinarily appointed by the principal. However, if a sub-agent is appointed without the express or implied consent of the principal, the principal is not responsible for the sub-agent's actions. This distinction highlights the importance of obtaining the principal's consent when appointing sub-agents and the subsequent legal implications.
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Directions: Read the following passage and answer 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.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.[Extracted with edits and revisions from Agency- Finer details in Indian Context, blog by netlawman]Q.What does Section 189 of the Indian Contract Act, 1872, specify about the powers of an agent?

Directions: Read the following passage and answer 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.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.[Extracted with edits and revisions from Agency- Finer details in Indian Context, blog by netlawman]Q.Mr. X designated Mr. Y as an agent solely for the purpose of procuring goods from Mr. Z. Due to Mr. Ys busy schedule, he engaged Mr. U as an agent to procure goods from Mr. Z without Mr. Xs consent. Unfortunately, Mr. U made a significant error that resulted in financial losses for Mr. Z. Now, Mr. Z seeks compensation from Mr. X. What should be the decision?

Directions: Read the following passage and answer 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.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.[Extracted with edits and revisions from Agency- Finer details in Indian Context, blog by netlawman]Q.Mr. X appoints Mr. Y as his agent and then leaves town. Mr. Y, facing difficulties in managing the business, attempts to contact Mr. X for permission to appoint a sub-agent. Unfortunately, Mr. X is in an area with poor connectivity and cannot be reached. In desperation, Mr. Y seeks consent from Mr. Xs wife, which she grants. Subsequently, due to actions taken by the sub-agent, a customer wishes to hold Mr. X liable. What is the decision?

Directions: Read the following passage and answer 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.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.[Extracted with edits and revisions from Agency- Finer details in Indian Context, blog by netlawman]Q.Mr. X is appointed as an agent for Mr. Y, responsible for managing Mr. Ys household business during Mr. Ys absence from town. On a day when Mr. Y had just returned to town, Mr. X obtained credit in the name of Mr. Ys business. Now, Mr. Y wants to absolve himself from the credit liability. What should be the decision?

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.

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Directions: Read the following passage and answer 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.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.[Extracted with edits and revisions from Agency- Finer details in Indian Context, blog by netlawman]Q.Under what circumstances is a principal liable for the acts of a sub-agent, as mentioned in the passage?a)The principal is always liable for the acts of a sub-agent, regardless of the situation.b)The principal is only liable if the sub-agent is appointed with the express consent of the principal.c)The principal is never liable for the acts of a sub-agent, even with their consent.d)The principal is liable for the acts of the sub-agent when the sub-agent is appointed with or without their consent.Correct answer is option 'B'. Can you explain this answer?
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Directions: Read the following passage and answer 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.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.[Extracted with edits and revisions from Agency- Finer details in Indian Context, blog by netlawman]Q.Under what circumstances is a principal liable for the acts of a sub-agent, as mentioned in the passage?a)The principal is always liable for the acts of a sub-agent, regardless of the situation.b)The principal is only liable if the sub-agent is appointed with the express consent of the principal.c)The principal is never liable for the acts of a sub-agent, even with their consent.d)The principal is liable for the acts of the sub-agent when the sub-agent is appointed with or without their consent.Correct 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 Directions: Read the following passage and answer 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.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.[Extracted with edits and revisions from Agency- Finer details in Indian Context, blog by netlawman]Q.Under what circumstances is a principal liable for the acts of a sub-agent, as mentioned in the passage?a)The principal is always liable for the acts of a sub-agent, regardless of the situation.b)The principal is only liable if the sub-agent is appointed with the express consent of the principal.c)The principal is never liable for the acts of a sub-agent, even with their consent.d)The principal is liable for the acts of the sub-agent when the sub-agent is appointed with or without their consent.Correct 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 Directions: Read the following passage and answer 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.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.[Extracted with edits and revisions from Agency- Finer details in Indian Context, blog by netlawman]Q.Under what circumstances is a principal liable for the acts of a sub-agent, as mentioned in the passage?a)The principal is always liable for the acts of a sub-agent, regardless of the situation.b)The principal is only liable if the sub-agent is appointed with the express consent of the principal.c)The principal is never liable for the acts of a sub-agent, even with their consent.d)The principal is liable for the acts of the sub-agent when the sub-agent is appointed with or without their consent.Correct answer is option 'B'. Can you explain this answer?.
Solutions for Directions: Read the following passage and answer 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.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.[Extracted with edits and revisions from Agency- Finer details in Indian Context, blog by netlawman]Q.Under what circumstances is a principal liable for the acts of a sub-agent, as mentioned in the passage?a)The principal is always liable for the acts of a sub-agent, regardless of the situation.b)The principal is only liable if the sub-agent is appointed with the express consent of the principal.c)The principal is never liable for the acts of a sub-agent, even with their consent.d)The principal is liable for the acts of the sub-agent when the sub-agent is appointed with or without their consent.Correct 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 Directions: Read the following passage and answer 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.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.[Extracted with edits and revisions from Agency- Finer details in Indian Context, blog by netlawman]Q.Under what circumstances is a principal liable for the acts of a sub-agent, as mentioned in the passage?a)The principal is always liable for the acts of a sub-agent, regardless of the situation.b)The principal is only liable if the sub-agent is appointed with the express consent of the principal.c)The principal is never liable for the acts of a sub-agent, even with their consent.d)The principal is liable for the acts of the sub-agent when the sub-agent is appointed with or without their consent.Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Directions: Read the following passage and answer 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.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.[Extracted with edits and revisions from Agency- Finer details in Indian Context, blog by netlawman]Q.Under what circumstances is a principal liable for the acts of a sub-agent, as mentioned in the passage?a)The principal is always liable for the acts of a sub-agent, regardless of the situation.b)The principal is only liable if the sub-agent is appointed with the express consent of the principal.c)The principal is never liable for the acts of a sub-agent, even with their consent.d)The principal is liable for the acts of the sub-agent when the sub-agent is appointed with or without their consent.Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Directions: Read the following passage and answer 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.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.[Extracted with edits and revisions from Agency- Finer details in Indian Context, blog by netlawman]Q.Under what circumstances is a principal liable for the acts of a sub-agent, as mentioned in the passage?a)The principal is always liable for the acts of a sub-agent, regardless of the situation.b)The principal is only liable if the sub-agent is appointed with the express consent of the principal.c)The principal is never liable for the acts of a sub-agent, even with their consent.d)The principal is liable for the acts of the sub-agent when the sub-agent is appointed with or without their consent.Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Directions: Read the following passage and answer 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.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.[Extracted with edits and revisions from Agency- Finer details in Indian Context, blog by netlawman]Q.Under what circumstances is a principal liable for the acts of a sub-agent, as mentioned in the passage?a)The principal is always liable for the acts of a sub-agent, regardless of the situation.b)The principal is only liable if the sub-agent is appointed with the express consent of the principal.c)The principal is never liable for the acts of a sub-agent, even with their consent.d)The principal is liable for the acts of the sub-agent when the sub-agent is appointed with or without their consent.Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Directions: Read the following passage and answer 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.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.[Extracted with edits and revisions from Agency- Finer details in Indian Context, blog by netlawman]Q.Under what circumstances is a principal liable for the acts of a sub-agent, as mentioned in the passage?a)The principal is always liable for the acts of a sub-agent, regardless of the situation.b)The principal is only liable if the sub-agent is appointed with the express consent of the principal.c)The principal is never liable for the acts of a sub-agent, even with their consent.d)The principal is liable for the acts of the sub-agent when the sub-agent is appointed with or without their consent.Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CLAT tests.
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