| 1. INTRODUCTION: | | | | (VIII) RIGHT OF STOPAGE OF GOODS IN |
| The contract which creates relationship of principal | | | | TRANSIT: |
| and agent is called agency. An agent is involving | | | | He has right of stoppage of goods in transit. |
| party to the contract of agency. He is merely | | | | 8. DUTIES OF AN AGENT: |
| connecting link. His authority can be revoked by | | | | Following are the duties of an agent. |
| the principal. | | | | (I) OBEY THE INSTRUCTIONS: |
| 2. AGENT: | | | | He should obey the instructions of the principal. |
| He is a person employed to do any act for | | | | (II) CONDUCTING BUSINESS: |
| another in dealing with third parties. | | | | It is the duty of agent to conduct the business of |
| 3. APPOINTMENT OF AGENT: | | | | principal. |
| According to sec. 183 | | | | (III) SHOWING OF ACCOUTNS: |
| "Any person who is of the age of majority | | | | He should maintain the accounts and show to |
| according to the law to which is subject, and who | | | | principal on his demand. |
| is of sound mind, may employ an agent. | | | | (IV) RETURN OF UNDUE PROFIT: |
| 4. WHO MAY BE AGENT: | | | | If an agent has earned undue profit from the |
| According to Sec. 184 Contract Act. | | | | business he should return it to principal. |
| "As between the principal and third person, any | | | | (V) USE OF SKILL AND KNOWLEDGE: |
| person may become an agent, but no person | | | | Agent should perform his duties as much skill and |
| who is not of the age of majority and of sound | | | | knowledge as is generally shown by ordinary |
| mind can become an agent, so as to reasonable | | | | prudence in similar business. |
| to his principal according to provisions in that | | | | (VI) PAYMENT OF ALL SUMS: |
| behalf herein contained. | | | | He should pay all sums to his principal received on |
| 5. RIGHTS OF AGENT: | | | | his account. |
| Following are the rights of agent. | | | | (VII) SEPARATE ACCOUNTS: |
| (I) RIGHT OF REMMUNERATION: | | | | He should not mix his account with the principal |
| It is basic right of an agent. | | | | and maintain separate accounts. |
| (II) RIGHT OF COMMISSION: | | | | (VIII) DUTY IN CASE PRINCIPAL DIE OR |
| He has also right of commission. | | | | BECOME INSANE: |
| (III) RIGHT OF LINE: | | | | He should protect the interest of legal heirs. |
| An agent has right of line over goods until the | | | | (IX) NOT TO DELEGATE AUTHORITY: |
| payment in due is received by him. | | | | He should not delegate his authority to any other. |
| (IV) RIGHT TO RETAIN: | | | | (X) DUTY TO COMMUNICATE WITH |
| An agent has right to retain goods, papers and | | | | PRINCIPAL: |
| other property until the amount due is paid. | | | | He should give all information to principal about |
| (V) RIGHT OF COMPENSATION: | | | | thematters of business. |
| In case of injury caused to agent by the | | | | (XI) SHOULD NOT MAKE ANY SECRET |
| negligence of principal may be compensated by | | | | PROFIT: |
| him. | | | | He should not make any secret profit. |
| (VI) RIGHT TO BE INDEMNEFIED: | | | | (XII) PERFORMANCE WITH HONESTY: |
| An agent has a right to be indemnified against | | | | He should deal the business honestly. If he |
| liabilities falls on him. | | | | conducts the business dishonestly then he is not |
| (VII) RIGHT TO BE INDEMNIFIED AGIANST | | | | entitled to receive the reward of his services. |
| CONSEQUENCES OF ACTS DONE IN | | | | 6. CONCLUSION: |
| GOOD FAITH: | | | | To conclude I can say that. An agent is authorized |
| He has right to indemnified against the | | | | to create a contract between his principal and |
| consequences of act done in good faith even | | | | third party. An agent can be sued on his personal |
| though it causes an injury to the rights of third | | | | liabilities and the authority of an agent can be |
| person. | | | | revoked. |