Agency in contract law pdf

Like other contemporary commentary on agency law, the third restatement draws from contract and tort theory, an approach which ignores the unique features of. This was a group assignment but as always, i could not wait for the other members to submit their part, so i did the research and wrote this paper all by myself and of course presented it together with the group members. Contract act, 1872 act, which provides the framework of rules and regulations that. Firstly, a contract of agency between principal and agent and secondly, a contract of sale between. Definition of the law of agency the law of agency is one which concerns itself with the fiduciary relationship created, by express or implied contract or by law, in which one party the agent may act on behalf of another party the principal and bind that other party by words or action1. Example of a written contract of agency is the power of attorney that gives a right to an agency to act on behalf of his principal in accordance with the terms and conditions therein. An agency agreement, also sometimes called an agent agreement, is a document between two parties, a principal, and an agent. It means that an agent to whom authority has been delegated, cannot redelegate that to a third person. The principal acquires rights and liabilities under such a contract. There are two important general rules governing agency, namely, i. The american law institutean association of lawyers, academics, and judges authored the restatements of agency and, like all restatements, their text and comments represent an effort to capture the law as developed by the courts.

Consideration is not an essential element in the agency contract. By allowing enforcement of noncontractual rights by third parties trusts 3rd year semester 2 core subject equity and trusts commercial law law of property 3rd year semester 1 core subject property law breach of contract occurs when a party fails to perform the contract as agreed. This provision, however, is not applied in the cas. Agency relationship creates two contracts enforceable by law. Llm question bank multiple choice questions on law of contract. Introduction the law of agency is the law of delegationi. Thus, in an agency, there is in effect two contracts i. The reason is that the principals confidence in the agent, is at the root of the contract of agency. Agency is the relationship that subsists between the principal and the agent, who has been authorized to act for him or represent him in dealing with others. The principal will then be bound to the third party, but the principal can sue the agent for overstepping his actual authority, if its a breach of the agency contract. Agency contract may also arise by estoppel, necessity or ratification. The law recognizes the agency device and the rules relationg to the conduct of activity through an agency is called the law of agency.

This was a group assignment but as always, i could not wait for the other members to submit their part, so i did the research and wrote this paper all by myself and of. The law of agency derives its statutory base from chapter x of the indian. The genesis of such principle, which makes the principal in direct contractual relationship with third parties in a contract made by his agent, emerged from the case. The principal is the person who is essentially hiring or engaging the agent although an employment relationship is usually not created between the two. A contract is a promise or a set of promises which the law will enforce.