Duties of an agent under indian contract act. Contract of agency 2019-02-17

Duties of an agent under indian contract act Rating: 9,7/10 701 reviews

Laws of Business: Rights and Duties of Bailee

duties of an agent under indian contract act

Breach of Contract of carriage A corporation had placed the order on telephone. On the other hand, it rules the internal relationship between principal and agent as well, thereby imposing certain duties on the representative diligence, accounting, good faith, etc. Such compensation is not to be given for any remote and indirect loss of damage sustained by reason of the breach. Comments Tender must be strict Where the instructions have been issued to Bidders asking them to state against each work item unit rate in Indian Currency and in U. Primarily, he is an agent for the seller. The station master had to feed the horse. What to prove—Burden of proof If the transaction appears to be unconscionable then the burden of proving that the contract was not induced by undue influence is to lie upon the person who was in a position to dominate the will of the other; Shrimati v.

Next

Duties and Liabilities of Bailor (Indian Contract Act 1872)

duties of an agent under indian contract act

Mohanlal An agent, having been instructed to insure certain goods, failed to do so. The principal is not responsible for the acts of the sub agent if the sub agent is appointed without his consent. Agreements void for uncertainty — Agreements, the meaning of which is not certain, or capable of being made certain, are void. April 2017 The law of agency is an area of dealing with a set of , and non-contractual relationships that involve a person, called the agent, that is authorized to act on behalf of another called the to create legal relations with a third party. Powthat unless so authorized by the principal,an estate agent has no right to appoint a sub-agent and delegate to him his powers which require special skill and care. The goods were lost in an explosion at the docks.

Next

Legal Point: Various Kinds of Agents and their powers

duties of an agent under indian contract act

Further, reasonable notice has to be given by one party to the other; otherwise, damage resulting from want of such notice, will have to be paid Section 206. For these purposes, the knowledge of the partner acting will be to the other partners or the firm if a separate personality. Hence knowledge of the terms of the offer is essential for acceptance. C rides with care, but the horse accidentally falls and is injured. Therefore, an agent may not acquire a material benefit from a third party in connection with an agency transaction. Voidable contract 2 i :- An agreement is a voidable contract if it is enforceable by Law at the option of one or more of the parties there to i.


Next

Indian Contract Act, 1872

duties of an agent under indian contract act

In estimating the compensation payable by A to B, the market price of the first of January, and not the profit which would have arisen to B from the sale to C, is to be taken into account. He cannot also sue in his own name. B promises to grant time to C accordingly. But the goods were destroyed without negligence. However, the duty not to make secret profit may be discharged if the agent makes full disclosure of all the relevant facts to the principal and the principal consents to the making and retention of such profit by the agent. If he is appointed without authority of principal, he is improperly appointed.

Next

Duties of Agent

duties of an agent under indian contract act

There is nothing in the contracts which can in any way be construed as contrary to the joint and several liability created under section 128; Kailash Nath Agarwal v. B is entitled to no remuneration for his services, and must make good the loss. This Act may be called the Indian Contract Act, 1872. One is, agreements restraining enforcement of rights and the other deals with agreements curtailing period of limitation. A does not send the goods to B, and C sues B for breach of contract. By a subsequent Act, the nature of the office is materially altered.

Next

Law of agency

duties of an agent under indian contract act

B, in consequence of not receiving the money on that day, is unable to pay his debts, and is totally ruined. Application of payment where neither party appropriates Where neither party makes any appropriation, the payment shall be applied in discharge of the debts in order of time, whether they are or are not barred by the law in force for the time being as to the limitation of suits. Thus, a person can contract with a minor agent but the minor agent will not be responsible to the principal. Comments Natural love and affection as a consideration In order to rely upon clause 1 of section 25, the existence of the factum of natural love and affection between parties standing in a near relation to each other is a condition precedent; Rajlukhy Dabee v. B must pay to A, by way of compensation, the difference between the contract price of the iron and the sum for which A could have obtained and delivered it. But if, on the faith of such loan made for a specified time or purpose, the borrower has acted in such a manner that the return of the thing lent before the time agreed upon would cause him losses exceeding the benefit actually derived by him from the loan, the lender must, if he compels the return. In the case of a corporation, since a can only act through agents.

Next

Legal Point: Various Kinds of Agents and their powers

duties of an agent under indian contract act

Dispensing with notice of acceptance A notification of acceptance is required for the benefit of the person who makes the offer, the person who makes the offer may dispense with notice to himself if he thinks it desirable to do so: there can be no doubt that where a person in an offer made by him to another person expressly or impliedly, intimates a particular mode of acceptance as sufficient to make the bargain binding, it is only necessary for the other person to whom such offer is made to follow the indicated mode of acceptance; and if the person making the offer expressly or impliedly intimates in his offer that it will be sufficient to act on the proposal without communicating acceptance of it to himself, performance of the condition is a sufficient acceptance without notification; Carlill v. Oxford Journal of Legal Studies. A is not liable to make good to B anything except the principal sum he contracted to pay, together with interest upto the day of payment. In consequence of the omission of the clauses nothing can be recovered from the underwriters. If he does not inform the offeree, he is deemed to have accepted the offer.

Next

Laws of Business: Rights and Duties of Agents

duties of an agent under indian contract act

Explanation : A fraud or misrepresentation which did not cause the consent to a contract of the party on whom such fraud was practised, or to whom such misrepresentation was made, does not render a contract voidable. B is bound to make good to A the profit which he might have made by the 100 bales of cotton at the time of ship arrived, but not any profit he might have made by the subsequent rise. D makes default to the extent of 30,000 rupees. However, when the stipulations are clear and in contemplation of the parties or which necessarily arise out of the contract between the parties, they will be implied; State of Maharashtra v. B tells A it cannot be bought, and buys the house for himself.

Next

Laws of Business: Rights and Duties of Bailee

duties of an agent under indian contract act

An agency can be granted orally or through writing and it can also be created through subsequent ratification of the acts done by one person for the other. An authority is said to be implied when it is to be inferred from the circumstances of the case; and things spoken or written, or the ordinary course of dealing, may be accounted circumstances of the case. Here, the promise of each party is the consideration for the promise of the other party. Explanation 2 : An agreement to which the consent of the promisor is freely given is not void merely because the consideration is inadequate; but the inadequacy of the consideration may be taken into account by the Court in determining the question whether the consent of the promisor was freely given. Citation Enacted by Date enacted 25 April 1872 Date commenced 1 September 1872 Status: In force The Indian Contract Act, 1872 prescribes the law relating to contracts in India. Act 24 of 1899 , section 31 I. Delivery of possession to the bailee is sine qua non of bailment.

Next