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Law of Agency: Shafeeque TM

Was the franchisor liable for the injury?

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Abhishek Mishra
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86 views

Law of Agency: Shafeeque TM

Was the franchisor liable for the injury?

Uploaded by

Abhishek Mishra
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 22

LAW OF AGENCY

Shafeeque TM
DEFNITION OF AGENT &AGENCY
Agent:- is a person employed to do any
act for others or to represent another in P (1) A
dealings with third person.

The person for whom behalf he act is (2)


(3)
known as the principal.

The relationship between principal and


T
agent is known as agency
Who can employ an agent?
Section 183
Any person who is the age of majority according to the
law to which he is subject and who is of sound mind,
may employ an agent.

Who may be an agent?


Section 184
As between the principal and third party any person
can act as an agent.
DIFFERENT KINDS OF AGENCIES
MODES OF CREATING CONTRACT OF AGENCY

BY EXPRESS
AUTHORITY
BY ESTOPPEL
BY IMPLIED
AUTHORITY
BY HOLDING OUT

BY RATIFICATION
BY NECESSITY
BY OPERATION OF
LAW
Different kinds of agencies
Express Agency: S 187
A contract of agency may be created by an express
agreement when a principal appoints an agent either by
words or by writing.
Implied Agency: 187
It arises from the conduct , situation or relationship of
parties. It includes
1. Agency by estoppel.
2. Agency by holding out.
3. Agency by necessity.
Different kinds of agencies(CONT.)
Agency by estoppel :s 237
Where a person by his conduct or statement
induced others to believe that certain person in his
agent, he is estopped from subsequently denying it.
Agency by holding out:
In this case a prior positive or affirmative act on the
part of the principal is required to establish agency
subsequently.
Different kinds of agencies(CONT.)

Agency by necessity:
Sometimes extraordinary require that a person
who is not really an agent should act as an agent of
another.
Case law:
In Great Northern Railway Vs Swafied.
Different kinds of agencies(CONT.)
Agency by ratification :
It means the subsequent adoption and acceptance
of an act originally done without instruction 0r
authority.
Agency by operation of law:
Some times an agency is arises by operation of law.
When a company is formed, its promoters are its
agents by operation of law.
Different kind of agents
On the basis of extend of authority
1.Special agents : A special agent is appointed only for a
particular purpose and he has only authority to act in a
particular transaction.
2.General agents: is one who appointed to represent the
principal in all matters concerning a particular
business.
3.Universal agents: is a person whose authority is
unlimited and he can do anything for his principal.
Different kind of agents(CONT.)
On the basis of nature of work performed.
 A)Commercial or mercantile agents: is a person having
authority either to sell goods or consign goods or to
raise money on the security of goods. The following
are major commercial agents.
 Banker: act as an agent of the customer when he
collect cheques , drafts, sales of security on behalf of
customers.
 Broker: is one who negotiate and make contracts
either buy or sell goods.
Different kind of agents(CONT.)
 Factor: is entrusted with the possession of goods with an
authority to sell ,buy or money on the security.
 Auctioneers: is an agent employed by the owner to see
his property publicity by calling on the public to bid for it.
 Commission agent: is a person who is employed to do
certain act for his principal in return for a commission.
 Del credere agent: is one who is consideration of an extra
remuneration ,called del credere commission guarantees
the performance of the contract by the other party.
Different kind of agents(CONT.)
 B)Non mercantile agents :
 Wife.
 Attorneys.
 Advocates.
SUB AGENT & SUBSTITUTE AGENT
SUB AGENT : S 191
A sub agent is a person employed by
and acting under the control of the agent in the
business of the agency.
SUBSTITUTE AGENT: S197
A substitute agent is a person ,
appointed by the agent to act for principal in the
business of the agency with the knowledge and
consent of the principal.
Duties of an agent
1.To follow the instructions of the principal.
2.To work with reasonable skills and diligence.
3.To render proper account.
4.To communicate with the principal in difficult
situation.
5.Not to make any secret profit.
6.Not to deal on his own account.
7.To pay all sum to his principal.
.
Duties of an agent(CONT.)
8.Not to delegate his authority.
9. Not to disclose confidential information supplied to
him by the principal.
10. Duty on termination of agency by principal’s death
or insanity.
RIGHTS OF AN AGENT
Right of retainer.
Right to receive commission.
Right of lien.
Right of indemnification.
Right to compensation.
Right of stoppage of goods.
DUTIES OF PRINCIPAL
i) Duty to pay remuneration.
ii) Agent to be indemnified.
iii)Duty to indemnify the loss for principal’s neglect.
iv) Agent consequences of the act done good faith.
Termination of agency.
BY ACT OF PARTIES
A)Agreement : An agency like any other contract
may be terminated by the consent of the parties.
B)Revocation of authority: Principal may either
expressly or impliedly after giving reasonable notice ,
revoke the authority of the agent before it has been
exercised by the latter so as to bind the former.
C)Renunciation by the agent: The agent himself
may renounce the agency after giving a reasonable
notice to the principal.
Termination of agency(CONT.)
BY OPERATION OF LAW
Performance of contract.
Expiry of time.
Destruction of subject matter.
Death or insanity of either party.
Insolvency of the principal.
 Principal becoming an alien enemy.
CASES
I) Mill Street Church v. Hogan 1990

Church hires Bill Hogan to paint


the church building
Bill hires his brother Sam as help.
Sam is injured while painting & seeks
worker’s compensation
Was Bill Hogan an agent of the church
with implied authority to hire Sam?
II) Miller Vs McDonald’s Corp. (1997)

Fact: Jeni Miller purchase a sandwich form


McDonald’s , she suffered a stone in her food .
She sued the franchesor.

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