Law of agency

Agencies Law is the field of commercial law to deal with a range of credit relations, contractual and quasi-contractual and non-contractual involving a person, called the agent, and that is authorized to act on behalf of another person (called the principal) for the establishment of legal relations with third parties. Briefly, it may be referred to as the unequal relationship between the principal and the agent whereby the main, expressly or impliedly, authorizes the agent to work under its supervision or control, and on behalf of him or her. Agent and, therefore, required to negotiate on behalf of the client or bring him or her, and third parties in a contractual relationship. This branch of law separates and regulates relations between:

Agents and principals (internal relationship), known as the main agent relationship.

Agents and third parties dealing with them on behalf of their superiors "(external relations); and

And third parties when managers and agents deal.

In 1986, the European Communities issued a 86/653 / EEC directive on commercial agents self-employed. In the UK, it has been implemented in national law in the list of commercial agents in 1993.

In India, Section 182 of the Contract Law in 1872 defines agent as "a person who works to do any work for another or to represent another in dealing with a third person."

Mutual rights and obligations between the principal and the agent reflect the commercial and legal facts. And the employer often depends on the employee or another person to conduct business. In the case of a company, because the company is a legal person and a fake, it can act only through human agents. Must master of the agreement by the agent contract, is as long as the agent in the scope of the agency.

Any third party may rely in good faith on the representation by a person identifying himself as an agent for another. It does not always cost effective to check whether the person who is represented by the presence of the authority to act for the last already has this power. If it later found that the alleged agent was acting without the necessary powers, and generally hold the agent responsible.

The World agents wide powers to act on behalf of the principal, for example, has held power of attorney (also known as the state of the civil law jurisdictions), or have a professional relationship, he says, and the lawyer and his client.

Agents held public limited authority to conduct a series of transactions during the continuous period of time; and

Authorized agents to conduct special either only one specific transaction or series of transactions over a limited period of time.

Worker who works in the scope of authority granted by the principal of his or her connecting major commitments he or she creates against third parties. There are basically three types of recognized authority in law: actual authority (either express or implied), clear authority, and the certification authority.

Can the actual power may be of two types. The school principal has the authority expressly granted to the agent, or it may mean power. Body established under an agreement by mutual consent, and whether it exists is a question of fact. Agent, as a general rule, is only entitled to compensation from the school if it had acted within the scope of its actual power, and could be in breach of contract, and prone to a third party for breach of implied warranty of authority. In tort, and demands may not recover out what the agent did not act in the scope of work.

Implied actual authority, also called "the usual power," is the authority of the Under and by virtue of being reasonably necessary to carry out the explicit authority. As such, it can be inferred that by virtue of the position taken by an agent. For example, partners have obliged the other partners in the company's authority, responsibility, and they are jointly and severally, Inc., and all executives and senior officials with decision-making power by virtue of their status has obliged the company authority.

Clear authority (also called "alleged Authority") is where the key words or conduct that a reasonable person leads in the position of the third party to believe that the agent was authorized to work, even if the principal and the agent alleged such not discussed link. For example, where one person appoints someone to the position, which carries with it the powers such as the IAEA, which has the right to appoint those who know to assume that there is a clear authority to do things normally entrusted to the one occupied such a position. If the headmaster creates the impression that the authorized agent but there is no actual authority, and the protection of third parties so long as they have acted reasonably. This is what is sometimes called "agency by estoppel" or "the doctrine of steadfastness," where they will be dropped by the main right of denying the authority to grant third parties if their attitudes have changed to their advantage in relying on the petitions submitted.

Rama Corporation v proven tin and investments Public Co. Ltd. 1952 2 QB 147, Slade J "alleged or apparent authority ... is just a form of estoppel forms, in fact, has been described by the agency by estoppel and you can not call in aid to estoppel only if you have three components : (i) the representation, (b) rely on the representation, and (c) to change your position resulting from such reliance. "

Freeman and Lockyer v Buckhurst Park properties (machete) Ltd 1964 2 QB 480

Sylvia or Egyptian International Company for Foreign Trade against Soplex Supplies Wholesale Co., Ltd. PS Refson Co., Ltd. 19 852 36 Czech Lloyds.

In the case of Ato against Fenwick, the Queen's seat Lord Coleridge CJ agreed with the view that the commandments J that a third party can be held personally liable school, who said he does not know about when he sold cigars to the worker, who was acting outside its authority. Wills J held that "the agent responsible for all acts that fall within the authority usually confided to the agent of this nature manager, despite the limitations, and between the principal and the agent, put on that power." This decision strongly criticized and doubted, although they were not completely set aside in the United Kingdom. Sometimes referred to as "the usual power" (but not in the sense of the user by Lord Denning MR in Hely- Hutchinson, where it is synonymous with "implied actual authority"). This has been discussed as a form of clear authority, or "underlying strength agency.

Power by virtue of the position held to deter:

Fraud and other damage that may infect individuals dealing with agents, and there is the concept of agency inherent strength, which is power derived only by virtue of the agency relationship.

For example, partners have the clear authority to bind the other partners in the company, their responsibility is being jointly and severally (see below), Inc., and all executives and senior officials with decision-making power by virtue of the declared position is clear authority to bind the company.

Even if the worker does not work without the authority of the director may ratify the deal, and accept responsibility for the transaction to be negotiated. This may be express or implied from the behavior of the principal of the school, for example, if the agent has claimed to act in a number of cases and the headmaster had acquiesced aware of, and failure to notify all concerned that there is no agent of authority is implicit endorsement of such transactions and grant tacit authority for future transactions of a similar nature.

It may solve the internal relationship of the agency agreement. Under Articles 201-210 of the Indian contract law in 1872, the agency has come to an end in a variety of ways:

Withdrawal by an agent - however, the principle can not be canceled and the agency along with charges of prejudice from these benefits. The combined agency interest when the same agent with an interest in the subject of the agency, for example, which receives goods from the constituent within the country to the commission agent for sale, with the poor the same for compensation from the proceeds of the sale, the progress made by him to the school principal against the security of goods; in such case, the manager can not cancel the agent goods sold actually satisfied the debt until the authority, nor is the agency end the death or insanity (illustrations Lq 201);

By Agent renounce acts of agencies;

By discharging the contractual obligations of the agency.

Instead, the agency may be terminated by operation of law:

The death of any of the parties.

Crazy either party.

From bankruptcy (insolvency) of any of the parties.

Headmaster also can not be canceled after the agent authority exercised in part, in the main to link (s 204), although it could always do so, before this power exercised until (s 203). Moreover, the picture frame. 205, and if the agency is for a fixed period, and director of the school can not quit the agency before the end of the period, except for sufficient cause. If he does not, he is liable to compensate the agent for the loss suffered by it thus. The same rules apply that agent and renounced agency for a specific period. Note in this regard that the want of skill, was held constant disobedience to lawful orders, rude and insulting behavior or have sufficient reason to dismiss agent. Moreover, we have to give reasonable notice from one party to the other. Otherwise, the damage caused by the absence of such notification, and must be paid (BC 206). Under the picture. 207, may be canceled or abandoned and the agency explicitly or implicitly in behavior. End does not take effect with respect to the agent, so that it becomes known to him, and with respect to a third party, until the end is known to them (BC 208).

When power is terminated as an agent, which acts as a subagent also end (BC 210).