RIGHTS AND DUTIES OF AN

AGENT

Sec 182 defines an agent as a person employed to do any

act for another , or to represent another in

dealings with third persons the person for whom such act is done is s called the

principal

AGENT

WHAT ARE RIGHTS AND DUTIES?

PROVISIONS HAVE BEEN MADE IN DIFFERENT SECTIONS OF THE INDIAN CONTRACT ACT OF 1872 , WHICH CONFER CERTAIN RIGHTS TO AS WELL AS IMPOSE CERTAIN DUTIES ON AN AGENT.

IN THE FOLLOWING SLIDES WE SHALL LOOK INTO THESE RIGHTS AND DUTIES OF AN AGENT.

RIGHTS OF AN AGENT

RIGHT TO DO ALL THE LAWFUL THINGS (SEC 188)

RIGHT TO APPOINT SUB AGENT AND SUBSTITUTE AGENT (SEC 191)

RIGHT TO RENOUNCE HIS AGENCY(SEC 201)

RIGHT TO RECEIVE REMUNERATION WHEN DUE (SEC 219)

RIGHT TO RECEIVE COMPENSATION FOR PREMATURE REVOCATION (SEC 205)

RIGHTS OF AN AGENT

AGENT’S RIGHT OF RETAINER.(SEC 217)

AGENT’S RIGHT OF LIEN ON PRINCIPAL’S PROPERTY. (SEC 221)

RIGHT TO BE INDEMNIFIED AGAINST THE CONSEQUENCES OF ALL THE ACTS DONE IN GOOD FAITH. (SEC 223)

RIGHT OF INDEMNIFICATION AGAINST THE CONSEQUENCES OF LAWFUL AND/OR LEGAL ACTS. (SEC 222)

DUTIES OF AN AGENT TO HIS PRINCIPAL

Rights and duties are two sides of the same coin.

As an agent has certain rights,he has to perform certain duties for the principal.

An agent owes a number of duties to his principal depending upon the nature of his work and his agency.

DUTIES OF AN AGENT

Duty to conduct principal’s business according to his instructions or directions.

To act on behalf of the principal on the termination of an agency or upon the death of the principal.( SEC 209)

Agent’s duty to carry on the work with reasonable care ,skill and diligence. ( SEC 212)

DUTIES OF AN AGENT

AGENT’S DUTY TO RENDER ACCOUNTS PROPERLY TO HIS PRINCIPAL ( SEC 213)

AGENT’S DUTY NOT TO DELEGATE HIS AUTHORITY ( SEC 190)

DUTY NOT TO DEAL ON HIS OWN ACCOUNT IN THE BUSINESS OF AGENCY ( SEC 215)

DUTY TO COMMUNICATE WITH PRINCIPAL IN CASES OF DIFFICULTY (SEC 214)

DUTIES OF AN AGENT

DUTY OF AN AGENT NOT TO EARN OR MAKE SECRET PROFIT. ( SEC 216)

AN AGENT IS BOUND TO EXERCISE THE SAME AMOUNT OF DISCRETION AS A MAN OF ORDINARY PRUDENCE WOULD EXERCISE IN HIS OWN CASE. (SEC 195)

LIABLE FOR DAMAGES: AN AGENT IS HELD LIABLE FOR DAMAGES FOR BREACH OF CONTRACT COMMITTED BY HIM. (SEC 220)

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