1. Law of Agency

2. Essentials of Agency
1. Agreement between principal and agent 2. Intention to act on behalf

3. Creation of Agency Agency by express agreement By implied agreement
By estoppel
By holding out
By necessity
Entrusted with other’s property
3. By ratification
Requisites of valid ratification

4. Creation of Agency Agent must be willing
Principal must be in existence
Principal must have contractual capacity
With full knowledge of facts
Within reasonable time
Must be lawful
Must be for total transaction

5. Creation of Agency h. Must be communicated
Dates back to act of the agent
4. By operation of law – Partnership, Company

6. Classification of Agents
Special agent
General agent
Universal agent
Banker
Non-mercantile agents

7. Duties of Agent Work according to the directions of the principal
Reasonable care
Render proper accounts to his principal
Communicate to principal in case of difficulty
Not to deal on his own account
To pay sums received for the principal
Preserve the interest of principal

8. Duties of Agent
8. Not to use information against the principal 9. Not to make secret profits 10. Not to set adverse title 11. Not to put himself in a position where interest and duty conflict 12. Not to delegate authority

9. Rights of Agent Right to retain Right to receive remuneration
Right of indemnification
Right of compensation
Right of stoppage of goods in transit

10. Rights of Principal To recover damages
To obtain an account of secret profits
To resist claim

11. Duties of Principal To indemnify the agent
To indemnify for injury caused by principal neglect
To pay remuneration

12. Termination of Agency By act of the parties Agreement
Revocation by the principal
Revocation by the agent

13. Termination of Agency Contd
2. By Operation of law
Performance of contract
Expiry of time
By death or insanity
Insolvency
Destruction of subject matter
Becoming an alien enemy
Dissolution of a company