Law of Agency

TOPIC THREE: LAW OF AGENCY * Nature and Creation of an gene * Duties of an Agent to his Principal * Duties of a Principal to his Agent * Termination of Agency Contr comprise     NATURE OF AGENCY What is an result? atom 135 of Contract Act 1950: Agency is the kind which subsists between the headway and the performer who has been authorized to act for him or represent him in dealings with others. There are both types of agency contracts:- 1. Contract between principal(prenominal) & agent 2.Contract between principal & third caller through the medium of the agent. CREATION OF AGENCY Agency can be created through:-  1. Express appointment 2. Implied appointment by principal 3. Ratification by principal 4.Necessity 5.Estoppel   1. Express appointment This egests when the principal expressly appoints a person to be his agent. This could be through with(p) in cardinal ways: a) oral b) in typography 2. Implied appointment Implied appointment may be created under three situations:- a) When a person by his word or conduct holds prohibited another person as having federal agency to act for him b) descent between husband & wife c) Relationship between partners  3.

Ratification (Approval) Agency by ratification can happen only if it falls under these two situations:- a) Agent who has been nominate but has exceeded his authority when he entered into a contract with a third party. b) A person who has no authority to act for the principal but he acted as if he has the authority to enter into a contract with third party. According to Section 149 of Contract Act, if either one of these two situations involve, the principal has two choices i.e.: to reject the contract or to accept the contract. When he accepts the contract, it is know as ratification. Conditions of a Valid Ratification a) The contract make by agent was without authority or exceeding authority.... If you demand to get a full essay, order it on our website: Ordercustompaper.com

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