What is the\nmeaning of an Agent and a Principal under the Law of Agency?<\/strong><\/h2>\n\n\n\nThe Indian Contract Act, 1872 defines an\n“Agent” under section 182 as a person who is employed to do any act\nfor another person or to represent another party in dealing with the third\nparty whereas the person for whom such act is represented is called the\nprincipal. Therefore, the person who has delegated his or her authority will be\nthe principal. <\/p>\n\n\n\n
For example<\/strong> Joe\nappoints Mary to deal with his bank transactions. In this case, Joe is the Principal<\/strong>, Mary is the Agent<\/strong> and the bank is the third party.<\/p>\n\n\n\nHow to\ncreate an Agency under the Law of Agency?<\/strong><\/h2>\n\n\n\nAn agency can create in two ways:<\/p>\n\n\n\n
- Express\nAuthority: <\/strong>It means an agent has actually been told by the contract that the\nagent may act on behalf of the principal.<\/li>
- Implied\nAgreement: <\/strong>Implied authority is that authority where an agent has by virtue\nof being reasonably necessary to carry out his or her express authority.<\/li><\/ul>\n\n\n\n
What are the\ntypes of agents under the Law of Agency?<\/strong><\/h2>\n\n\n\n![\"\"](\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/Capture-4.jpg\")
<\/figure>\n\n\n\nHere are the types you must know such as:<\/p>\n\n\n\n
- Sub-Agent is the agent who is appointed by another agent.<\/li>
- General Agent is the one who is employed to transact all the acts which are connected to the particular activity. Example: Manager of the firm.<\/li>
- Universal Agent is one who has an unlimited authority who is authorized to do all such acts which the principal can lawfully do.<\/li>
- Co-Agent is when the agent appoints the other agent to do any act jointly.<\/li>
- Special Agent is one who is authorized to do any act which is given by the principal in some particular transactions.<\/li>
- Substitute Agent is an agent to be appointed by the principal in the absence of the present agent.<\/li>
- Auction Agent is an agent who acts as the seller to the principal.<\/li>
- The broker is an employed agent to purchase and sell the goods on behalf of the principal.<\/li>
- Commission Agent is the one who buys the goods or sells the goods on behalf of the principal on the best possible terms.<\/li><\/ul>\n\n\n\n
What are the\nlegal duties of agents under the Law of Agency?<\/strong><\/h2>\n\n\n\nAgents are required to act up to the\nfollowing duties and standards:<\/p>\n\n\n\n
- Loyalty<\/strong>: An agent\nowes his principal-agent agreement by a general obligation of allegiance. It\nstands that the agent must subordinate his or her interests to those of the\nprincipal if they fall within the agency relationship in addition.<\/li>
- Act by the\nterms and the conditions of a contract<\/strong>: It is essential to perform following the\nwords and the requirements provided in the agreement with reference.<\/li>
- Care,\ncompetence and diligence<\/strong>: In this, the agent needs to take the proper amount of care and\nsteps which is required in any difficult situation.<\/li>
- Ethical\nconduct<\/strong>:\nThis requires that the agent act in a way that does not injure the critical\nendeavor. The agent must take a reasonable attempt to provide the principal\nwith the relevant facts and the information.<\/li>
- Lawful\ninstruction<\/strong>: It is essential to act following the commitment to meet the\nprincipal’s right instruction.<\/li><\/ul>\n\n\n\n
What are the\nlegal duties of the Principal under the Law of Agency?<\/strong><\/h2>\n\n\n\nThe principal also owes agents several\nduties:<\/p>\n\n\n\n
- Contract<\/strong>: If the\nprincipal breaches his or her obligations, then the agent can recover based on\nthe breach of contract<\/em><\/a> claim.<\/li>
- Indemnify<\/strong>: In this\ncase when the agent unknowingly did any act without his or her knowledge, then\nthe principal has to guarantee the agent for his or her liability.<\/li>
- Good faith<\/strong>: The\nprincipal must refrain from taking actions that could result in the loss for\nthe agent when the agent has not done any fault.<\/li><\/ul>\n\n\n\n
What are the\nrights of an Agent?<\/strong><\/h2>\n\n\n\nAn agent has the following five rights such\nas:<\/p>\n\n\n\n![\"\"](\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/Capture1-1.jpg\")
<\/figure>\n\n\n\n- Right to\nretainer<\/strong>:\nAn agent can claim the advance payment for his or her services before\ncompleting his or her task.<\/li>
- Right to the\nremuneration<\/strong>: Under common law, an agent is only entitling to remuneration for\nhis or her services as an agent if the term of an agency agreement is provided.<\/li>
- Right to\ncompensation<\/strong>: In this, the agent can claim the compensation when he or she\nfound being cheated.<\/li>
- The right of\nlien on the principal’s property<\/a><\/strong>: The right of lien is normally restricted to\na right of possession of the goods. It confers no right on the agent to sell or\ncharge or otherwise dispose of the same with this similarity.<\/li>
- Directly to\nbe indemnified<\/strong>: An agent has a right to indemnified by his or her principal for\nall the expenses which caused loss.<\/li><\/ul>\n\n\n\n
How the Agency Get Terminates?<\/strong><\/h2>\n\n\n\nThe agency will get terminate in the following situations such as:<\/p>\n\n\n\n
- Death<\/li>
- Insanity<\/li>
- Insolvency<\/li>
- Destruction<\/li>
- Alien Enemy<\/li>
- Expiry of Time<\/li>
- Contract is Completed<\/li>
- Revocation<\/li>
- Mutual Agreement<\/li><\/ul>\n\n\n\n
Conclusion<\/strong><\/h2>\n\n\n\nHowever,the contract establishes a\nrelationship of the agency which prevalent in business laws for the law of\nagency. These can be express or implied. An agency creates when a person\ndelegates his or her authority to another person. It is when a person appoints\nthem to do any specific job in the specified areas of work. This topic is\ndefined under the Indian Contract Act, 1872<\/em><\/a>. The establishment of\nprincipal-agent relationship confers rights and the duties on both parties.\nThere are many examples of the connection such as insurance agency, advertising\nagency, travel agency, factors, etc.<\/p>\n\n\n\nAlso Read:<\/strong>
Consumer Protection Laws in India<\/a>
Understand the Law Against Anti-Bullying<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"The principal-agent relationship is an arrangement where one entity lawfully selects another person to act on its behalf. In a principal-agent relationship, the agent works on behalf of the principal and should not have the conflict of the interest in carrying out the act. The relationship between the principal and the agent is called the […]<\/p>\n","protected":false},"author":4,"featured_media":20157,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2438,1931],"tags":[2526],"acf":{"service_id":"283"},"yoast_head":"\n
Law of Agency: Principal and Agent Relationship | Enterslice<\/title>\n<meta name=\"description\" content=\"The relationship between the principal and the agent is called the law of agency. The rule of agency establishes guidelines for such a relationship.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/law-of-agency\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Law of Agency: Principal and Agent Relationship | Enterslice\" \/>\n<meta property=\"og:description\" content=\"The relationship between the principal and the agent is called the law of agency. The rule of agency establishes guidelines for such a relationship.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/law-of-agency\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:author\" content=\"enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2019-04-11T09:30:17+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-04-06T08:51:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/Law-of-Agency.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"805\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Narendra Kumar","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/nk-1.jpg","authorDescription":"Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.","postViews":827,"readingTime":4,"nextPost":{"id":15383,"slug":"the-preamble-of-indian-constitution-meaning-and-significance"},"prevPost":{"id":15367,"slug":"right-to-privacy-judgment-impact-us"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/Law-of-Agency.jpg","postTerms":"Legal","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/15374"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=15374"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/15374\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/20157"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=15374"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=15374"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=15374"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
How to\ncreate an Agency under the Law of Agency?<\/strong><\/h2>\n\n\n\nAn agency can create in two ways:<\/p>\n\n\n\n
- Express\nAuthority: <\/strong>It means an agent has actually been told by the contract that the\nagent may act on behalf of the principal.<\/li>
- Implied\nAgreement: <\/strong>Implied authority is that authority where an agent has by virtue\nof being reasonably necessary to carry out his or her express authority.<\/li><\/ul>\n\n\n\n
What are the\ntypes of agents under the Law of Agency?<\/strong><\/h2>\n\n\n\n<\/figure>\n\n\n\nHere are the types you must know such as:<\/p>\n\n\n\n
- Sub-Agent is the agent who is appointed by another agent.<\/li>
- General Agent is the one who is employed to transact all the acts which are connected to the particular activity. Example: Manager of the firm.<\/li>
- Universal Agent is one who has an unlimited authority who is authorized to do all such acts which the principal can lawfully do.<\/li>
- Co-Agent is when the agent appoints the other agent to do any act jointly.<\/li>
- Special Agent is one who is authorized to do any act which is given by the principal in some particular transactions.<\/li>
- Substitute Agent is an agent to be appointed by the principal in the absence of the present agent.<\/li>
- Auction Agent is an agent who acts as the seller to the principal.<\/li>
- The broker is an employed agent to purchase and sell the goods on behalf of the principal.<\/li>
- Commission Agent is the one who buys the goods or sells the goods on behalf of the principal on the best possible terms.<\/li><\/ul>\n\n\n\n
What are the\nlegal duties of agents under the Law of Agency?<\/strong><\/h2>\n\n\n\nAgents are required to act up to the\nfollowing duties and standards:<\/p>\n\n\n\n
- Loyalty<\/strong>: An agent\nowes his principal-agent agreement by a general obligation of allegiance. It\nstands that the agent must subordinate his or her interests to those of the\nprincipal if they fall within the agency relationship in addition.<\/li>
- Act by the\nterms and the conditions of a contract<\/strong>: It is essential to perform following the\nwords and the requirements provided in the agreement with reference.<\/li>
- Care,\ncompetence and diligence<\/strong>: In this, the agent needs to take the proper amount of care and\nsteps which is required in any difficult situation.<\/li>
- Ethical\nconduct<\/strong>:\nThis requires that the agent act in a way that does not injure the critical\nendeavor. The agent must take a reasonable attempt to provide the principal\nwith the relevant facts and the information.<\/li>
- Lawful\ninstruction<\/strong>: It is essential to act following the commitment to meet the\nprincipal’s right instruction.<\/li><\/ul>\n\n\n\n
What are the\nlegal duties of the Principal under the Law of Agency?<\/strong><\/h2>\n\n\n\nThe principal also owes agents several\nduties:<\/p>\n\n\n\n
- Contract<\/strong>: If the\nprincipal breaches his or her obligations, then the agent can recover based on\nthe breach of contract<\/em><\/a> claim.<\/li>
- Indemnify<\/strong>: In this\ncase when the agent unknowingly did any act without his or her knowledge, then\nthe principal has to guarantee the agent for his or her liability.<\/li>
- Good faith<\/strong>: The\nprincipal must refrain from taking actions that could result in the loss for\nthe agent when the agent has not done any fault.<\/li><\/ul>\n\n\n\n
What are the\nrights of an Agent?<\/strong><\/h2>\n\n\n\nAn agent has the following five rights such\nas:<\/p>\n\n\n\n<\/figure>\n\n\n\n- Right to\nretainer<\/strong>:\nAn agent can claim the advance payment for his or her services before\ncompleting his or her task.<\/li>
- Right to the\nremuneration<\/strong>: Under common law, an agent is only entitling to remuneration for\nhis or her services as an agent if the term of an agency agreement is provided.<\/li>
- Right to\ncompensation<\/strong>: In this, the agent can claim the compensation when he or she\nfound being cheated.<\/li>
- The right of\nlien on the principal’s property<\/a><\/strong>: The right of lien is normally restricted to\na right of possession of the goods. It confers no right on the agent to sell or\ncharge or otherwise dispose of the same with this similarity.<\/li>
- Directly to\nbe indemnified<\/strong>: An agent has a right to indemnified by his or her principal for\nall the expenses which caused loss.<\/li><\/ul>\n\n\n\n
How the Agency Get Terminates?<\/strong><\/h2>\n\n\n\nThe agency will get terminate in the following situations such as:<\/p>\n\n\n\n
- Death<\/li>
- Insanity<\/li>
- Insolvency<\/li>
- Destruction<\/li>
- Alien Enemy<\/li>
- Expiry of Time<\/li>
- Contract is Completed<\/li>
- Revocation<\/li>
- Mutual Agreement<\/li><\/ul>\n\n\n\n
Conclusion<\/strong><\/h2>\n\n\n\nHowever,the contract establishes a\nrelationship of the agency which prevalent in business laws for the law of\nagency. These can be express or implied. An agency creates when a person\ndelegates his or her authority to another person. It is when a person appoints\nthem to do any specific job in the specified areas of work. This topic is\ndefined under the Indian Contract Act, 1872<\/em><\/a>. The establishment of\nprincipal-agent relationship confers rights and the duties on both parties.\nThere are many examples of the connection such as insurance agency, advertising\nagency, travel agency, factors, etc.<\/p>\n\n\n\nAlso Read:<\/strong>
Consumer Protection Laws in India<\/a>
Understand the Law Against Anti-Bullying<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"The principal-agent relationship is an arrangement where one entity lawfully selects another person to act on its behalf. In a principal-agent relationship, the agent works on behalf of the principal and should not have the conflict of the interest in carrying out the act. The relationship between the principal and the agent is called the […]<\/p>\n","protected":false},"author":4,"featured_media":20157,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2438,1931],"tags":[2526],"acf":{"service_id":"283"},"yoast_head":"\n
Law of Agency: Principal and Agent Relationship | Enterslice<\/title>\n<meta name=\"description\" content=\"The relationship between the principal and the agent is called the law of agency. The rule of agency establishes guidelines for such a relationship.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/law-of-agency\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Law of Agency: Principal and Agent Relationship | Enterslice\" \/>\n<meta property=\"og:description\" content=\"The relationship between the principal and the agent is called the law of agency. The rule of agency establishes guidelines for such a relationship.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/law-of-agency\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:author\" content=\"enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2019-04-11T09:30:17+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-04-06T08:51:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/Law-of-Agency.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"805\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Narendra Kumar","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/nk-1.jpg","authorDescription":"Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.","postViews":827,"readingTime":4,"nextPost":{"id":15383,"slug":"the-preamble-of-indian-constitution-meaning-and-significance"},"prevPost":{"id":15367,"slug":"right-to-privacy-judgment-impact-us"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/Law-of-Agency.jpg","postTerms":"Legal","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/15374"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=15374"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/15374\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/20157"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=15374"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=15374"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=15374"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
What are the\ntypes of agents under the Law of Agency?<\/strong><\/h2>\n\n\n\n<\/figure>\n\n\n\nHere are the types you must know such as:<\/p>\n\n\n\n
- Sub-Agent is the agent who is appointed by another agent.<\/li>
- General Agent is the one who is employed to transact all the acts which are connected to the particular activity. Example: Manager of the firm.<\/li>
- Universal Agent is one who has an unlimited authority who is authorized to do all such acts which the principal can lawfully do.<\/li>
- Co-Agent is when the agent appoints the other agent to do any act jointly.<\/li>
- Special Agent is one who is authorized to do any act which is given by the principal in some particular transactions.<\/li>
- Substitute Agent is an agent to be appointed by the principal in the absence of the present agent.<\/li>
- Auction Agent is an agent who acts as the seller to the principal.<\/li>
- The broker is an employed agent to purchase and sell the goods on behalf of the principal.<\/li>
- Commission Agent is the one who buys the goods or sells the goods on behalf of the principal on the best possible terms.<\/li><\/ul>\n\n\n\n
What are the\nlegal duties of agents under the Law of Agency?<\/strong><\/h2>\n\n\n\nAgents are required to act up to the\nfollowing duties and standards:<\/p>\n\n\n\n
- Loyalty<\/strong>: An agent\nowes his principal-agent agreement by a general obligation of allegiance. It\nstands that the agent must subordinate his or her interests to those of the\nprincipal if they fall within the agency relationship in addition.<\/li>
- Act by the\nterms and the conditions of a contract<\/strong>: It is essential to perform following the\nwords and the requirements provided in the agreement with reference.<\/li>
- Care,\ncompetence and diligence<\/strong>: In this, the agent needs to take the proper amount of care and\nsteps which is required in any difficult situation.<\/li>
- Ethical\nconduct<\/strong>:\nThis requires that the agent act in a way that does not injure the critical\nendeavor. The agent must take a reasonable attempt to provide the principal\nwith the relevant facts and the information.<\/li>
- Lawful\ninstruction<\/strong>: It is essential to act following the commitment to meet the\nprincipal’s right instruction.<\/li><\/ul>\n\n\n\n
What are the\nlegal duties of the Principal under the Law of Agency?<\/strong><\/h2>\n\n\n\nThe principal also owes agents several\nduties:<\/p>\n\n\n\n
- Contract<\/strong>: If the\nprincipal breaches his or her obligations, then the agent can recover based on\nthe breach of contract<\/em><\/a> claim.<\/li>
- Indemnify<\/strong>: In this\ncase when the agent unknowingly did any act without his or her knowledge, then\nthe principal has to guarantee the agent for his or her liability.<\/li>
- Good faith<\/strong>: The\nprincipal must refrain from taking actions that could result in the loss for\nthe agent when the agent has not done any fault.<\/li><\/ul>\n\n\n\n
What are the\nrights of an Agent?<\/strong><\/h2>\n\n\n\nAn agent has the following five rights such\nas:<\/p>\n\n\n\n<\/figure>\n\n\n\n- Right to\nretainer<\/strong>:\nAn agent can claim the advance payment for his or her services before\ncompleting his or her task.<\/li>
- Right to the\nremuneration<\/strong>: Under common law, an agent is only entitling to remuneration for\nhis or her services as an agent if the term of an agency agreement is provided.<\/li>
- Right to\ncompensation<\/strong>: In this, the agent can claim the compensation when he or she\nfound being cheated.<\/li>
- The right of\nlien on the principal’s property<\/a><\/strong>: The right of lien is normally restricted to\na right of possession of the goods. It confers no right on the agent to sell or\ncharge or otherwise dispose of the same with this similarity.<\/li>
- Directly to\nbe indemnified<\/strong>: An agent has a right to indemnified by his or her principal for\nall the expenses which caused loss.<\/li><\/ul>\n\n\n\n
How the Agency Get Terminates?<\/strong><\/h2>\n\n\n\nThe agency will get terminate in the following situations such as:<\/p>\n\n\n\n
- Death<\/li>
- Insanity<\/li>
- Insolvency<\/li>
- Destruction<\/li>
- Alien Enemy<\/li>
- Expiry of Time<\/li>
- Contract is Completed<\/li>
- Revocation<\/li>
- Mutual Agreement<\/li><\/ul>\n\n\n\n
Conclusion<\/strong><\/h2>\n\n\n\nHowever,the contract establishes a\nrelationship of the agency which prevalent in business laws for the law of\nagency. These can be express or implied. An agency creates when a person\ndelegates his or her authority to another person. It is when a person appoints\nthem to do any specific job in the specified areas of work. This topic is\ndefined under the Indian Contract Act, 1872<\/em><\/a>. The establishment of\nprincipal-agent relationship confers rights and the duties on both parties.\nThere are many examples of the connection such as insurance agency, advertising\nagency, travel agency, factors, etc.<\/p>\n\n\n\nAlso Read:<\/strong>
Consumer Protection Laws in India<\/a>
Understand the Law Against Anti-Bullying<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"The principal-agent relationship is an arrangement where one entity lawfully selects another person to act on its behalf. In a principal-agent relationship, the agent works on behalf of the principal and should not have the conflict of the interest in carrying out the act. The relationship between the principal and the agent is called the […]<\/p>\n","protected":false},"author":4,"featured_media":20157,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2438,1931],"tags":[2526],"acf":{"service_id":"283"},"yoast_head":"\n
Law of Agency: Principal and Agent Relationship | Enterslice<\/title>\n<meta name=\"description\" content=\"The relationship between the principal and the agent is called the law of agency. The rule of agency establishes guidelines for such a relationship.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/law-of-agency\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Law of Agency: Principal and Agent Relationship | Enterslice\" \/>\n<meta property=\"og:description\" content=\"The relationship between the principal and the agent is called the law of agency. The rule of agency establishes guidelines for such a relationship.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/law-of-agency\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:author\" content=\"enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2019-04-11T09:30:17+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-04-06T08:51:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/Law-of-Agency.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"805\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Narendra Kumar","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/nk-1.jpg","authorDescription":"Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.","postViews":827,"readingTime":4,"nextPost":{"id":15383,"slug":"the-preamble-of-indian-constitution-meaning-and-significance"},"prevPost":{"id":15367,"slug":"right-to-privacy-judgment-impact-us"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/Law-of-Agency.jpg","postTerms":"Legal","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/15374"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=15374"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/15374\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/20157"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=15374"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=15374"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=15374"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
<\/figure>\n\n\n\nHere are the types you must know such as:<\/p>\n\n\n\n
- Sub-Agent is the agent who is appointed by another agent.<\/li>
- General Agent is the one who is employed to transact all the acts which are connected to the particular activity. Example: Manager of the firm.<\/li>
- Universal Agent is one who has an unlimited authority who is authorized to do all such acts which the principal can lawfully do.<\/li>
- Co-Agent is when the agent appoints the other agent to do any act jointly.<\/li>
- Special Agent is one who is authorized to do any act which is given by the principal in some particular transactions.<\/li>
- Substitute Agent is an agent to be appointed by the principal in the absence of the present agent.<\/li>
- Auction Agent is an agent who acts as the seller to the principal.<\/li>
- The broker is an employed agent to purchase and sell the goods on behalf of the principal.<\/li>
- Commission Agent is the one who buys the goods or sells the goods on behalf of the principal on the best possible terms.<\/li><\/ul>\n\n\n\n
What are the\nlegal duties of agents under the Law of Agency?<\/strong><\/h2>\n\n\n\n
Agents are required to act up to the\nfollowing duties and standards:<\/p>\n\n\n\n
- Loyalty<\/strong>: An agent\nowes his principal-agent agreement by a general obligation of allegiance. It\nstands that the agent must subordinate his or her interests to those of the\nprincipal if they fall within the agency relationship in addition.<\/li>
- Act by the\nterms and the conditions of a contract<\/strong>: It is essential to perform following the\nwords and the requirements provided in the agreement with reference.<\/li>
- Care,\ncompetence and diligence<\/strong>: In this, the agent needs to take the proper amount of care and\nsteps which is required in any difficult situation.<\/li>
- Ethical\nconduct<\/strong>:\nThis requires that the agent act in a way that does not injure the critical\nendeavor. The agent must take a reasonable attempt to provide the principal\nwith the relevant facts and the information.<\/li>
- Lawful\ninstruction<\/strong>: It is essential to act following the commitment to meet the\nprincipal’s right instruction.<\/li><\/ul>\n\n\n\n
What are the\nlegal duties of the Principal under the Law of Agency?<\/strong><\/h2>\n\n\n\n
The principal also owes agents several\nduties:<\/p>\n\n\n\n
- Contract<\/strong>: If the\nprincipal breaches his or her obligations, then the agent can recover based on\nthe breach of contract<\/em><\/a> claim.<\/li>
- Indemnify<\/strong>: In this\ncase when the agent unknowingly did any act without his or her knowledge, then\nthe principal has to guarantee the agent for his or her liability.<\/li>
- Good faith<\/strong>: The\nprincipal must refrain from taking actions that could result in the loss for\nthe agent when the agent has not done any fault.<\/li><\/ul>\n\n\n\n
What are the\nrights of an Agent?<\/strong><\/h2>\n\n\n\n
An agent has the following five rights such\nas:<\/p>\n\n\n\n
<\/figure>\n\n\n\n- Right to\nretainer<\/strong>:\nAn agent can claim the advance payment for his or her services before\ncompleting his or her task.<\/li>
- Right to the\nremuneration<\/strong>: Under common law, an agent is only entitling to remuneration for\nhis or her services as an agent if the term of an agency agreement is provided.<\/li>
- Right to\ncompensation<\/strong>: In this, the agent can claim the compensation when he or she\nfound being cheated.<\/li>
- The right of\nlien on the principal’s property<\/a><\/strong>: The right of lien is normally restricted to\na right of possession of the goods. It confers no right on the agent to sell or\ncharge or otherwise dispose of the same with this similarity.<\/li>
- Directly to\nbe indemnified<\/strong>: An agent has a right to indemnified by his or her principal for\nall the expenses which caused loss.<\/li><\/ul>\n\n\n\n
How the Agency Get Terminates?<\/strong><\/h2>\n\n\n\n
The agency will get terminate in the following situations such as:<\/p>\n\n\n\n
- Death<\/li>
- Insanity<\/li>
- Insolvency<\/li>
- Destruction<\/li>
- Alien Enemy<\/li>
- Expiry of Time<\/li>
- Contract is Completed<\/li>
- Revocation<\/li>
- Mutual Agreement<\/li><\/ul>\n\n\n\n
Conclusion<\/strong><\/h2>\n\n\n\n
However,the contract establishes a\nrelationship of the agency which prevalent in business laws for the law of\nagency. These can be express or implied. An agency creates when a person\ndelegates his or her authority to another person. It is when a person appoints\nthem to do any specific job in the specified areas of work. This topic is\ndefined under the Indian Contract Act, 1872<\/em><\/a>. The establishment of\nprincipal-agent relationship confers rights and the duties on both parties.\nThere are many examples of the connection such as insurance agency, advertising\nagency, travel agency, factors, etc.<\/p>\n\n\n\n
Also Read:<\/strong>
Consumer Protection Laws in India<\/a>
Understand the Law Against Anti-Bullying<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"The principal-agent relationship is an arrangement where one entity lawfully selects another person to act on its behalf. In a principal-agent relationship, the agent works on behalf of the principal and should not have the conflict of the interest in carrying out the act. The relationship between the principal and the agent is called the […]<\/p>\n","protected":false},"author":4,"featured_media":20157,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2438,1931],"tags":[2526],"acf":{"service_id":"283"},"yoast_head":"\n
Law of Agency: Principal and Agent Relationship | Enterslice<\/title>\n<meta name=\"description\" content=\"The relationship between the principal and the agent is called the law of agency. The rule of agency establishes guidelines for such a relationship.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/law-of-agency\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Law of Agency: Principal and Agent Relationship | Enterslice\" \/>\n<meta property=\"og:description\" content=\"The relationship between the principal and the agent is called the law of agency. The rule of agency establishes guidelines for such a relationship.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/law-of-agency\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:author\" content=\"enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2019-04-11T09:30:17+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-04-06T08:51:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/Law-of-Agency.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"805\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Narendra Kumar","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/nk-1.jpg","authorDescription":"Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.","postViews":827,"readingTime":4,"nextPost":{"id":15383,"slug":"the-preamble-of-indian-constitution-meaning-and-significance"},"prevPost":{"id":15367,"slug":"right-to-privacy-judgment-impact-us"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/Law-of-Agency.jpg","postTerms":"Legal","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/15374"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=15374"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/15374\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/20157"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=15374"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=15374"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=15374"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
- Right to the\nremuneration<\/strong>: Under common law, an agent is only entitling to remuneration for\nhis or her services as an agent if the term of an agency agreement is provided.<\/li>
- Indemnify<\/strong>: In this\ncase when the agent unknowingly did any act without his or her knowledge, then\nthe principal has to guarantee the agent for his or her liability.<\/li>
- Act by the\nterms and the conditions of a contract<\/strong>: It is essential to perform following the\nwords and the requirements provided in the agreement with reference.<\/li>
- Loyalty<\/strong>: An agent\nowes his principal-agent agreement by a general obligation of allegiance. It\nstands that the agent must subordinate his or her interests to those of the\nprincipal if they fall within the agency relationship in addition.<\/li>