The Indian Contract Act, 1872: Agency
After reading this chapter, you will be able to understand:
- What is a contract of agency-agent-principal?
- Requirement of a valid agency contract
- Difference between an agent, a sub-agent and a substituted agent
- Types of agents
- Mode of creation of an agency
- Rights and duties of an agent and a principal
- Termination of an agency
11.1 CONTRACT OF AGENCY
A person cannot do every business transaction by himself because of time constraint and business complexity. Therefore, business people perform many activities through another person. The person who carried out the transaction on behalf of another is known as an agent. This arrangement is known as contract of agency.