Asma YasminRizwana Sarfraz

Presenters

InstructorMuhammad

Nauman

SubjectCorporate & Commercial

Law

Contract of Agency

Topic

Introduction of agencyEssentialities of contract of

agency

Asma Yasmin

What is agency?Relationship between Principal and

AgentAuthority to representBinding for principalResponsible for acts of agentResponsibility of negligence on

principalResponsibility of negligence on agentNo responsibility on minor agent Section 182-238 of Contract Act

1872.

Example: Coca cola beverages appointed

Muhammad Ahmad Ali as its sales agent in district Jhang. At a remuneration of Rs.30,000/- per month. All the terms and conditions are settled in the contract.

Who is agent? Agent is a person

who represents some other person and is authorized to do so, by him.

Example: In this example

Muhammad Ahmad Ali is an agent who is representing Coca Cola and is authorized by Coca Cola to do so.

Who is principal? The person who

is being represented by agent, is called as Principal.

Example: In this Example

Coca Cola is principal who is being represented by Muhammad Ahmad Ali.

Kinds of agency

There are two types of agency

General Agency

Special Agency

General AgencyDefinition The agent is authorized to do all the act required to conduct a business.Example: Coca cola beverages employs

Muhammad Reyan as a sales manager. This is a

general agency contract and here Muhammad Reyan is a general agent of the company.

Special AgencyDefinition The agent is appointed to

perform a specific task.Example: Coca cola appointed Muhammad

Ahmad Ali as its sales agent in district Jhang.

Essentialities of contract of agency

There are five essentialities of agency Agreement Legal Relationship Capability to Contract Consideration not essential Intention of Agent to act for principal

AgreementThere must be an agreement in

Agency.

Legal RelationshipLegal relationship between agent and

principalLegal relationship between principal and

third party

Capability to ContractCompetency of principal

Solvent Not disqualified by law

Competency of Agent Sound mind Not disqualified by law May be a minor

Consideration not essentialConsideration is not necessary in every case

Intention of Agent to act for principal Intention of agent to act for principal is

necessary in the contract of agency.

TopicRights and Duties of Agent

Rights and Duties of Principal

Rizwana Sarfraz

Rights of agentRemunerationLienIndemnified for consequencesRetainerStoppage of goods in transitCompensate for injuryCompensated for against Act done

for faith

Duties of agentFollow instructionBest use of abilitiesNot mix propertyMaintain accountsPayments of amountsDeath or insanity of principalNo appointment of sub agentCommunicate with principal

Rights of principalFollow instructionBest use of abilitiesNot mix propertyMaintain accountsPayments of amountsCommunicate with principal

Duties of principalRemunerationLienIndemnified for consequencesRetainerStoppage of goods in transitCompensate for injuryCompensated for against Act done

in good faith

THANK YOU!

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