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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. Mr. X designated Mr. Y as an agent solely for the purpose of procuring goods from Mr. Z. Due to Mr. Y's busy schedule, he engaged Mr. U as an agent to procure goods from Mr. Z without Mr. X's 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?
  • a)
    Mr. X is not obligated to provide compensation since Mr. U is not Mr. X's agent.
  • b)
    Mr. X is not obligated to compensate as Mr. U was performing the same task as Mr. Y.
  • c)
    Mr. U is personally liable to provide compensation for his actions as he is a sub-agent.
  • d)
    Mr. X is liable to pay compensation since he is the principal of the sub-agent.
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Directions: Read the following passage and answer the question.Section...
Mr. X specifically appointed Mr. Y as an agent for the specific purpose of procuring goods from Mr. Z. However, due to Mr. Y's busy schedule, Mr. Y enlisted Mr. U as an agent without obtaining Mr. X's consent. Regrettably, Mr. U's actions resulted in financial losses for Mr. Z. In this scenario, Mr. X is not obliged to offer compensation because Mr. U does not fall under Mr. X's agency and was performing the same task as Mr. Y. Therefore, the liability for compensation rests with Mr. U as the sub-agent.
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Most Upvoted Answer
Directions: Read the following passage and answer the question.Section...
Explanation of the Decision
In this scenario, Mr. X designated Mr. Y as an agent specifically to procure goods from Mr. Z. Mr. Y, however, appointed Mr. U as a sub-agent without Mr. X's consent. This situation raises important legal implications regarding agency relationships.
Key Points to Consider:
- Agent's Authority: Mr. Y was given the authority to act on behalf of Mr. X. However, he lacked the authority to appoint a sub-agent without Mr. X's explicit consent.
- Principal's Liability: According to Section 182 and subsequent sections of the Indian Contract Act, a principal is only liable for the acts of an agent if those acts are within the scope of the authority granted. Since Mr. U was appointed without Mr. X's consent, Mr. X is not held liable for Mr. U's actions.
- Sub-Agent's Responsibility: Mr. U, as a sub-agent, directly undertook the task given by Mr. Y. Since Mr. U acted outside the authority bestowed upon him (due to lack of consent from Mr. X), he is personally liable for the errors he made that resulted in financial losses for Mr. Z.
Conclusion:
Given the above points, the correct decision is option 'A': Mr. X is not obligated to provide compensation since Mr. U is not Mr. X's agent. Mr. U acted without proper authority and thus bears personal responsibility for his actions.
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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.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?

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.Mr X appointed Mr Y as an agent only for the purpose of procuring goods from Mr Z. As Mr Y was having a hectic schedule, Mr Y employed Mr. U without the consent of Mr X as an agent to procure goods from Mr Z. Mr U did a grave mistake resulting in a financial loss of Mr Z. Mr Z now wants compensation from Mr X. Decide.

Passage - 6It is a fact that air and noise pollution in Delhi and NCR is increasing day-by-day. The measures for abatement of pollution are taken under the provisions of Water (Prevention and Control of Pollution) Act, 1974, Air (Prevention and Control of Pollution) Act, 1981 and Environment (Protection) Act, 1986 and rules made thereunder. Noise pollution is regulated under Noise Pollution (Regulation and Control) Rules, 2000 notified under Environment (Protection) Act, 1986. The legal framework provided by above rules is adequate to dealwith the problem of pollution and allows for revision of norms related to noise, emission or effluent to bring about a stricter regime.Government has taken several other steps to address the issue of pollution which inter alia, include notification of National Ambient Air Quality Standards; setting up of monitoring network for assessment of ambient air quality; introduction of cleaner / alternate fuels like gaseous fuel (CNG, LPG etc.), ethanol blending, launching of National Air Quality index; universalization of BS-IV by 2017; leapfrogging from BS-IV to BS-VI fuel standards by 1st April, 2020; notification of Construction and Demolition Waste Management Rules; banning of burning of biomass; promotion of public transport network; Pollution Under Control Certificate; issuance of directions under Section 18(1 )( b) of Air (Prevention and Control of Pollution) Act, 1981 comprising of action points to counter air pollution in major cities include control and mitigation measures related to vehicular emissions, re-suspension of road dust and other fugitive emissions, bio-mass/ municipal solid waste burning, industrial pollution, construction and demolition activities, and other general steps; installation of on-line continuous (24x7) monitoring devices by major industries; collection of Environmental Protection Charge on more than 2000 CC diesel vehicles; ban on bursting of sound emitting crackers between 10 PM to 6 AM; wide publicity on the ill effects of firecrackers and awareness programme among students and public at large to avoid bursting of fire-crackers; advisories for noise monitoring on the occasion of Deepawali; notification of graded response action plan for Delhi and NCR etc.Q.The right to life and liberty includes the right to a clean and free environment. The polluter pays principle states that whoever is responsible for damage to the environment should bear the costs associated with it. Carbonator was a multi-national corporation that had set up one of its factories in Surat. They released voluminous effluents into the river that flowed near the factory without employing any methods to filter them. P.C.Gupta was a conscientious citizen who filed a PIL against them asking them to employ some filtration methods so that the river would not be polluted to such a great extent. The corporation opted instead for the polluter pays way of compensation. The petitioner challenged their option in Court asking for a motion to compel the corporation to adopt the filtration method instead. Can he do so?

It is a fact that air and noise pollution in Delhi and NCR is increasing day-by-day. The measures for abatement of pollution are taken under the provisions of Water (Prevention and Control of Pollution) Act, 1974, Air (Prevention and Control of Pollution) Act, 1981 and Environment (Protection) Act, 1986 and rules made thereunder. Noise pollution is regulated under Noise Pollution (Regulation and Control) Rules, 2000 notified under Environment (Protection) Act, 1986. The legal framework provided by above rules is adequate to deal with the problem of pollution and allows for revision of norms related to noise, emission or effluent to bring about a stricter regime.Government has taken several other steps to address the issue of pollution which inter alia, include notification of National Ambient Air Quality Standards; setting up of monitoring network for assessment of ambient air quality; introduction of cleaner / alternate fuels like gaseous fuel (CNG, LPG etc.), ethanol blending, launching of National Air Quality index; universalization of BS-IV by 2017; leapfrogging from BS-IV to BS-VI fuel standards by 1st April, 2020; notification of Construction and Demolition Waste Management Rules; banning of burning of biomass; promotion of public transport network; Pollution Under Control Certificate; issuance of directions under Section 18(1)( b) of Air (Prevention and Control of Pollution) Act, 1981 comprising of action points to counter air pollution in major cities include control and mitigation measures related to vehicular emissions, re-suspension of road dust and other fugitive emissions, bio-mass/ municipal solid waste burning, industrial pollution, construction and demolition activities, and other general steps; installation of on-line continuous (24x7) monitoring devices by major industries; collection of Environmental Protection Charge on more than 2000 CC diesel vehicles; ban on bursting of sound emitting crackers between 10 PM to 6 AM; wide publicity on the ill effects of firecrackers and awareness programme among students and public at large to avoid bursting of fire-crackers; advisories for noise monitoring on the occasion of Deepawali; notification of graded response action plan for Delhi and NCR etc.Q. The right to life and liberty includes the right to a clean and free environment. The 'polluter pays principle' states that whoever is responsible for damage to the environment should bear the costs associated with it. Carbonator was a multi-national corporation that had set up one of its factories in Surat. They released voluminous effluents into the river that flowed near the factory without employing any methods to filter them. P.C.Gupta was a conscientious citizen who filed a PIL against them asking them to employ some filtration methods so that the river would not be polluted to such a great extent. The corporation opted instead for the 'polluter pays' way of compensation. The petitioner challenged their option in Court asking for a motion to compel the corporation to adopt the filtration method instead.Can he do so?

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?a)Mr. X is not obligated to provide compensation since Mr. U is not Mr. Xs agent.b)Mr. X is not obligated to compensate as Mr. U was performing the same task as Mr. Y.c)Mr. U is personally liable to provide compensation for his actions as he is a sub-agent.d)Mr. X is liable to pay compensation since he is the principal of the sub-agent.Correct answer is option 'A'. 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.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?a)Mr. X is not obligated to provide compensation since Mr. U is not Mr. Xs agent.b)Mr. X is not obligated to compensate as Mr. U was performing the same task as Mr. Y.c)Mr. U is personally liable to provide compensation for his actions as he is a sub-agent.d)Mr. X is liable to pay compensation since he is the principal of the sub-agent.Correct answer is option 'A'. 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.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?a)Mr. X is not obligated to provide compensation since Mr. U is not Mr. Xs agent.b)Mr. X is not obligated to compensate as Mr. U was performing the same task as Mr. Y.c)Mr. U is personally liable to provide compensation for his actions as he is a sub-agent.d)Mr. X is liable to pay compensation since he is the principal of the sub-agent.Correct answer is option 'A'. 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.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?a)Mr. X is not obligated to provide compensation since Mr. U is not Mr. Xs agent.b)Mr. X is not obligated to compensate as Mr. U was performing the same task as Mr. Y.c)Mr. U is personally liable to provide compensation for his actions as he is a sub-agent.d)Mr. X is liable to pay compensation since he is the principal of the sub-agent.Correct answer is option 'A'. 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.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?a)Mr. X is not obligated to provide compensation since Mr. U is not Mr. Xs agent.b)Mr. X is not obligated to compensate as Mr. U was performing the same task as Mr. Y.c)Mr. U is personally liable to provide compensation for his actions as he is a sub-agent.d)Mr. X is liable to pay compensation since he is the principal of the sub-agent.Correct answer is option 'A'. 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.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?a)Mr. X is not obligated to provide compensation since Mr. U is not Mr. Xs agent.b)Mr. X is not obligated to compensate as Mr. U was performing the same task as Mr. Y.c)Mr. U is personally liable to provide compensation for his actions as he is a sub-agent.d)Mr. X is liable to pay compensation since he is the principal of the sub-agent.Correct answer is option 'A'. 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.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?a)Mr. X is not obligated to provide compensation since Mr. U is not Mr. Xs agent.b)Mr. X is not obligated to compensate as Mr. U was performing the same task as Mr. Y.c)Mr. U is personally liable to provide compensation for his actions as he is a sub-agent.d)Mr. X is liable to pay compensation since he is the principal of the sub-agent.Correct answer is option 'A'. 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.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?a)Mr. X is not obligated to provide compensation since Mr. U is not Mr. Xs agent.b)Mr. X is not obligated to compensate as Mr. U was performing the same task as Mr. Y.c)Mr. U is personally liable to provide compensation for his actions as he is a sub-agent.d)Mr. X is liable to pay compensation since he is the principal of the sub-agent.Correct answer is option 'A'. 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.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?a)Mr. X is not obligated to provide compensation since Mr. U is not Mr. Xs agent.b)Mr. X is not obligated to compensate as Mr. U was performing the same task as Mr. Y.c)Mr. U is personally liable to provide compensation for his actions as he is a sub-agent.d)Mr. X is liable to pay compensation since he is the principal of the sub-agent.Correct answer is option 'A'. 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.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?a)Mr. X is not obligated to provide compensation since Mr. U is not Mr. Xs agent.b)Mr. X is not obligated to compensate as Mr. U was performing the same task as Mr. Y.c)Mr. U is personally liable to provide compensation for his actions as he is a sub-agent.d)Mr. X is liable to pay compensation since he is the principal of the sub-agent.Correct answer is option 'A'. 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