Rights of An Agent
Submitted by:
Radhika Prasad, B.A. L.L.B.(Hons.)
Roll no. – 2139
2019-2024
Submitted to:
Dr. Vijay Kumar Vimal
Faculty of Law
September, 2020
Chanakya National Law University, Patna
INTRODUCTION
A person who has been employed to discharge a duty for someone else, or to represent him;
is called an “Agent.” Agent is defined under section 182 of Indian Contracts Act, 1872. The
represented person, or for whom the work is being done, is called the “Principal.”1
The central idea behind the principal-agent relationship is that the principal is too busy to do
various jobs so he/she hires an agent to do the job on his or her behalf.
In India, the agent and principle share a relationship that is contractual in nature, and
therefore it is governed by the terms and conditions of the contract between them. Chapter X
of the Indian Contract Act, 1872 provides the basic structure of rules and regulations that
basically govern the performance and formation of any type of contract including the agency
contract. In agency contracts, there exists a legal relationship between two people whereby
one person acts on behalf of the other. The person acting on behalf of the other is called an
agent, and the person from whom the agent derives authority to act is called the principal.
The law of agency is based on the Latin maxim “qui facit per alium, facit per se,” which
means, “he who acts through another is deemed in law to do it himself“ 1. Agent and
principal are defined under Section 182 of the Indian Contract Act, 1872. According to the
section “an agent is 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”. 2. The competent agent is legally capable of acting for the principal
vis-à-vis the third party. Now who can become an agent? Section 184 answers this question.
According to this section any person can become an agent i.e. there is no need to have a
contractual capacity to become an agent. Therefore, a minor can also act as an agent. But the
minor will not be responsible to his principal. 3. Different types of commercial agents have
been identified under Indian law like brokers, auctioneers, del credere agents, persons
entrusted with money for obtaining sales and insurance agents.
1
Indian Contract Act, 1872. Sec 182.
Aims and Objectives
The aim of the researcher is to find out that
1) The basis of the law relating to agency
2) Rights of an agent
Hypothesis
The researcher has formulated following hypothesis here, validity of which will be checked
in the course of project.
The researcher believes that their are specific duties of an agent failing which it could lead to
termination of agency. Their are also certain rights of an agent that is given to him for smooth
carrying forward of his agency and that protects his agency.
Research Questions
1) The researcher basically wants to find what are the specific laws that are directly
related to agency.
2) The researcher also wants to find out so as to what are the rights given to the agent to
protect his agency
Research Methodology
Method of Research : The researcher has adopted only doctrinal method of research.
Limitation : Due to limitation of time and resources the researcher has confined her
research work to the doctrinal method.
Sources of data : Both primary and secondary sources.
Method of writing : The method of writing followed in the course of this research
paper is primarily analytical.
Mode of citation : The researcher has followed uniform mode of citation.
Tentative Chapterisation
1) Introduction
2) Duties of an agent
3) Rights of an agent
4) Termination of agency
5) Characteristics of agency service
6) Legal maxims forming the basis of law relating to agency
7) Conclusion
Bibliography
Books
Kapoor N. D, “Elements of Merchentile Law”
Bansal C. L, “Business and Corporate Laws”, Excel Books Publishers, 2006.
www.dateyvs.com/gener03.htm www.wekepedia.org/wiki/agency(Law)
Articles Journals
Ankita Jha, Agent – Sections 182 – 238 of Indian Contract Act, October 30, 2018.
Dalley, Paula, University of Pittsburgh Law Review, A theory of agency law, May 7 2011
