Agency the indian contract act agency in law, the relationship that exists when one person or party the principal engages another the agent to act for him. This article titled types of contracts deals withe classification of contracts o n the basis of its enforcement, mode of creation and extent of its execution. According to indian contract act, 1872 contract of agency is a contract by which a. Meaning and definition of agency agency is the legal relationship between an agent and principal to bring the principal into legal relationship with the third party. The indian contract act, 1872 defines an agent in section 182 as a person employed to do any act for another or to represent another in dealing with third persons. The indian contract act, 1872 was enacted on 25th april, 1872 act 9 of 1872 and subsequently came into force on the first day of september 1872. It is important to know the law relating to agency because nearly all business transactions worldwide are carried out through agency. Mar 21, 2019 a contract of agency is a species of the general contract. Discharge of surety by variance in terms of contract 87. Herein we will discuss the creation of agency under indian contract act, 1872.
The essence of the india contract act has been modelled on that of the english common law. Agency under section 182 of the indian contract act, 1872. Sep 30, 2018 agency under section 182 of the indian contract act, 1872. Indian contract act, 1872 bare acts law library advocatekhoj. Multiple choice questions on law of contract llm question bank. Section 206 of indian contract act, 1872 provides that, principal can revoke the agents authority so also the agent can renounce the agency by giving a reasonable notice of renunciation otherwise he will be liable to make the loss good for any damage. The indian contract act, 1872 codifies the legal principles that govern such contracts. Creation and termination of agency it is a general principle of contract law that only the parties to the contract acquire rights and liabilities under it. Thus a contract is an agreement made between two or more parties which the law will enforce. The law of agency thus governs the legal relationship in which the agent deals with a third party on behalf of the principal. The relation of principal and agent can only be terminated by the act or agreement of the parties to the agency or by operation of law.
Section 182 of the act defines agent as person employed to do any act for another or to. For more online law lectures do subscribe our channel. Section 216 of the indian contract act, 1872 reads as if an agent, without the knowledge of his principal, deals in the business of the agency on his own account instead of on account of his principal, the principal is entitled to claim from the agent any benefit which may have resulted to him from the transaction. It extends to the whole of india 1 except the state of jammu and kashmir. Contract act, 1872 act, which provides the framework of rules and regulations that. Indian contract act 1872 chapter1 nature of contracts part. The law relating to contracts in india is contained in the indian contract act, 1872. It shall be in writing and signed by the person or by his agent to pay debt either in part or full, which the creditor might have enforced but for the law for the limitation of suits. This act may be called the indian contract act, 1872. In our discussion on this part of the book, unless otherwise stated, the sections mentioned are those of the indian contract act, 1872. A contract is an agreement between two or more persons which is intended to be. Contracts of agency an agent does not act on his own behalf but acts on behalf of his principal. Agency under indian contract act, 1872 law of agency.
Demo lecture of indian contract act 1872 by sudhir sachdeva. The indian contract act, 1872 prescribes the law relating to contracts in india and is the key act regulating indian contract law. Consideration is the return benefit the parties to the contract get. In agency contracts, there exists a legal relationship between two people whereby one person acts on behalf of the other.
Mcqs on indian contract act 1872 with answers is been discussed here. Short title this act may be called be the indian contract act, 1872. Meaning and definition of contract under the indian contract act 1872 the definition of contract is given under s. Contract of indemnity contemplates only a promisor and a promise no privity of contract between surety and debtor in contract of indemnity while in contract of guarantee, surety, creditor and principal debtor are all parties to contract. The indian contract act is one of the oldest mercantile laws of our country. According to section 182, the person for whom such act is done, or who is so represented, is called the principal. Termination of agency contract of agency srd law notes. Agents authority judicial interpretation who is an. Nov 21, 2012 contracts of agency an agent does not act on his own behalf but acts on behalf of his principal. When one person signifies to another his willingness to do or to abstain from doing any thing with a view to obtaining the assent of that other person to such act or abstinence he is said to make a. History of the indian contract act 1872 law teacher.
Preamble 9 of 1872 whereas it is expedient to define and amend certain parts of the law relating to contract. The indian contract act, 1872 prescribes the law relating to contracts in india and is the key act. Discharge of surety by release or discharge of principal debtor 88. Chapter x of the indian contract act, 1872 deals with the laws relating to agency. Application of indian act the contract act, 1872, of india now repealed in its application to kenya shall, notwithstanding such repeal, continue to apply to any agreement made or contract entered into before the commencement of this act. The act basically identifies the ingredients of a legally enforceable valid contract in addition to dealing with certain special type of contractual relationships like indemnity, guarantee, bailment, pledge, quasi contracts, contingent contracts etc. It determines the circumstances in which promises made by the parties to a contract shall be legally binding. Agency system is very popular in the current business scenario. Revocation of continuing guarantee by suretys death 85.
Communication, acceptance and revocation of proposals. All corporations, big or small, carry their work out through agency. Pakistan contract act 1872 pdf contract to do act afterwards becoming impossible or unlawful. Agency indian contract act 1872 law of agency indemnity. Agents authority judicial interpretation who is an agent. The indian contract act 1872 is a part of legal aspects of business lab. The general law of contract in pakistan is contained in the contract act otto f a meinardus two thousand years of coptic christianity 1872 which is the. According to section 2h of the indian contract act, 1872 a contract is an agreement between two or more parties that is enforceable by law as a binding legal agreement. Section 216 of the indian contract act,1872 reads as if an agent, without the knowledge of his principal, deals in the business of the agency on his own account instead of on account of his principal, the principal is entitled to claim from the agent any benefit which may have resulted to him from the transaction. The conditions to be fulfilled for its maintainability in the court of law are.
According to section 126 of the contract act a contract of guarantee is a contract to perform the promise, or discharge the liability, of a third person in case of his default. By kushal dhoot dipali dhane jui parmar contracts of agency sec 182 of the indian contract act,1872 defines agent and principal as. Liability of two persons, primarily liable, not affected by arrangement between them that one shall be surety on others default 86. The act basically identifies the ingredients of a legally enforceable valid contract in addition to dealing with certain special type of contractual relationships like indemnity, guarantee. Agreement void where both parties are under mistake as to matter of fact. Whereas it is expedient to define and amend certain parts of the law relating to. All agreements are not studied under the indian contract act, 1872, as some of those are not contracts. The law of agency derives its statutory base from chapter x of the indian contract act, 1872 act, which provides the framework of rules and regulations that govern formation and performance of any contract including the agency contract.
As such, an agency may terminate in the same way as a contract is discharged except where the agency is irrevocable. By kushal dhoot dipali dhane jui parmar contracts of agency sec 182 of the indian contract act, 1872 defines agent and principal as. Section 201 to 210 of the indian contract act 1872 lay down the provision relating to the termination of agency. A well recognized exception to this general rule is the concept of agency. Apr 04, 2015 chapter x of the indian contract act, 1872 provides the basic structure of rules and regulations that basically govern the performance and formation of any type of contract including the agency contract.
The object of the contract of guarantee is to enable. Consideration under indian contract act 1872 legal bites. Modes of creation of agency indian contract act 1872. Show all sections the indian contract act, 1872 preliminary. Relation between principal and person duly appointed by agent to act in business of agency. Indian contract act, 1872 updated 2019 with colourful pdf. The law of agency derives its statutory base from chapter x of the indian. Preamblewhereas it is expedient to define and amend certain parts of the law relating to contracts. Full text containing the act, indian contract act, 1872, with all the sections, schedules, short. Containing a total of 266 sections it is the principal law regulating contracts in india. An agent is a person acting on behalf of his principal. He either represents his principal in transactions with third parties or performs an act for the principal. A person to obtain an employment, or a loan, or some goods or service on credit. Section 2d if the indian contract act, 1872 defines it as follows.
Agent means a person employed to do any act for another or to represent another in dealing with the third persons and the principal means a person for whom such act is done or who is so represented. Chapter x agency, appointment and authority of agents. Communication, acceptance and revocation of proposals, contracts, violable contracts and void agreements, contingent contracts, certain relations resembling those created by contract, consequences of breach of contract, sale of goods, indemnity and guarantee. What considerations and objects are lawful and what not. The indian contract act 1872 contingent contract youtube. Section 17 of the indian contract act 1872 contemplates fraud as an act committed by. Agency under indian contract act, 1872 free download as powerpoint presentation. Full text containing the act, indian contract act, 1872, with all the sections, schedules, short title, enactment date, and footnotes. By the agent renouncing the business of the agency. Watch the indian contract act 1872 contingent contract, lecture with sanyog vyas. All transactions that relate to the agreements and obligations of the contracting parties come under the purview of the act.
Agency the indian contract act agency in law, the relationship that exists when one person or party the principal engages another the agent to act for him, e. The act provides the general principles and rules governing contracts. Consideration is the return benefit the parties to. Mcqs on indian contract act 1872 with answers speak hr. The indian contract act, 1872 icai knowledge gateway. The act is based on the principles of english common law. Contract caused by mistake of one party as to matter of fact. Every agreement and promise enforceable at law is a contract. Section 2e of the indian contract act, 1872 defines an agreement as every promise and every set of promises forming consideration for each other. The question as to whether a particular persons is an agent can be verified by finding out if his continue reading class notes on contract ii unit iii 2nd sem 3 year ll. The indian contract act, 1872 codifies the legal principles that govern contracts. Power to set aside contract induced by undue influence. Termination of agency under contract act academike.
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