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Questions and Answers
What is the role of an agent in the law of agency?
What is the role of an agent in the law of agency?
According to the Contract Act 1950, how many ways may arise an agency?
According to the Contract Act 1950, how many ways may arise an agency?
What is an example of express appointment by the principal?
What is an example of express appointment by the principal?
How can an agent be authorized to sign a contract according to section 140?
How can an agent be authorized to sign a contract according to section 140?
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What is the role of the principal in the law of agency?
What is the role of the principal in the law of agency?
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Study Notes
Role of Agent in Law of Agency
- An agent acts on behalf of the principal, representing them in contractual negotiations and agreements.
Formation of Agency
- An agency can arise in two ways according to the Contract Act 1950:
- By express agreement
- By implied agreement
Express Appointment
- Example of express appointment by the principal: A principal verbally informs an agent of their authority to act on their behalf in a specific matter.
Agent's Authority to Sign Contracts
- According to Section 140, an agent can be authorized to sign a contract if they have a power of attorney, which is a written document stating the principal's authorization for the agent to act on their behalf.
Role of Principal in Law of Agency
- The principal has a pivotal role, as they delegate authority to the agent, who then acts on their behalf in contractual matters.
- The principal is ultimately responsible for the actions of the agent, as they have given the agent the authority to act on their behalf.
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Description
Test your knowledge of the law of agency with this quiz! Learn about the different ways an agency may arise according to the Contract Act 1950 and understand the roles of the agent and principal in creating legal relationships with third parties.
