Agency relationships are commonly established when one party wants to ___ beyond their personal capacity.

Expand their activities

Fill in the blank: An agent must act in a manner that demonstrates ___ and ___ to the principal.

Competence and diligence

True or False: A minor can appoint an agent under Indian law.

False. A minor cannot appoint an agent, as they lack the legal capacity to contract.

What are the two types of authority an agent can possess?

Express authority and implied authority.

Describe the 'Duty to Follow Instructions' of an agent.

Agents must follow principal's instructions.

• Ensures alignment with goals.

• Promotes trust and reliability.

• Upholds legal obligations.

What is the significance of ratification in agency relationships?

Ratification allows a principal to approve actions taken by an agent without prior authorization, making the principal responsible for those actions.

Fill in the blank: An agent's authority in emergencies allows them to act to prevent ___ to the principal.

Loss

True or False: An agent is personally liable for contracts made on behalf of the principal unless stated otherwise.

True. Agents are generally not personally liable unless they exceed authority or do not disclose the principal.

What happens when an agent exceeds their authority in a transaction?

What are the key legal provisions outlined for agency relationships under the Indian Contract Act, specifically between Sections 182 and 238?

Agency laws in India detail agent roles.

• Outlines agent authority clearly.

• Specifies duties of agents involved.

• Defines principal's rights and terms.