Whelen Lights

Accord Right

Agent Duties and Rights Under CONTRACT Laws

1. INTRODUCTION:
The contract which creates relationship of principal and agent is called agency. An agent is involving party to the contract of agency. He is merely connecting link. His authority can be revoked by the principal.

2. AGENT:
He is a person employed to do any act for another in dealing with third parties.

3. APPOINTMENT OF AGENT:
According to sec. 183
"Any person who is of the age of majority according to the law to which is subject, and who is of sound mind, may employ an agent.

4. WHO MAY BE AGENT:
According to Sec. 184 Contract Act.
"As between the principal and third person, any person may become an agent, but no person who is not of the age of majority and of sound mind can become an agent, so as to reasonable to his principal according to provisions in that behalf herein contained.

5. RIGHTS OF AGENT:
Following are the rights of agent.

(I) RIGHT OF REMMUNERATION:
It is basic right of an agent.

(II) RIGHT OF COMMISSION:
He has also right of commission.

(III) RIGHT OF LINE:
An agent has right of line over goods until the payment in due is received by him.

(IV) RIGHT TO RETAIN:
An agent has right to retain goods, papers and other property until the amount due is paid.

(V) RIGHT OF COMPENSATION:
In case of injury caused to agent by the negligence of principal may be compensated by him.

(VI) RIGHT TO BE INDEMNEFIED:
An agent has a right to be indemnified against liabilities falls on him.

(VII) RIGHT TO BE INDEMNIFIED AGIANST CONSEQUENCES OF ACTS DONE IN
GOOD FAITH:
He has right to indemnified against the consequences of act done in good faith even though it causes an injury to the rights of third person.

(VIII) RIGHT OF STOPAGE OF GOODS IN
TRANSIT:
He has right of stoppage of goods in transit.

8. DUTIES OF AN AGENT:
Following are the duties of an agent.

(I) OBEY THE INSTRUCTIONS:
He should obey the instructions of the principal.

(II) CONDUCTING BUSINESS:
It is the duty of agent to conduct the business of principal.

(III) SHOWING OF ACCOUTNS:
He should maintain the accounts and show to principal on his demand.

(IV) RETURN OF UNDUE PROFIT:
If an agent has earned undue profit from the business he should return it to principal.

(V) USE OF SKILL AND KNOWLEDGE:
Agent should perform his duties as much skill and knowledge as is generally shown by ordinary prudence in similar business.

(VI) PAYMENT OF ALL SUMS:
He should pay all sums to his principal received on his account.

(VII) SEPARATE ACCOUNTS:
He should not mix his account with the principal and maintain separate accounts.

(VIII) DUTY IN CASE PRINCIPAL DIE OR
BECOME INSANE:
He should protect the interest of legal heirs.

(IX) NOT TO DELEGATE AUTHORITY:
He should not delegate his authority to any other.

(X) DUTY TO COMMUNICATE WITH
PRINCIPAL:
He should give all information to principal about the
matters of business.

(XI) SHOULD NOT MAKE ANY SECRET
PROFIT:
He should not make any secret profit.

(XII) PERFORMANCE WITH HONESTY:
He should deal the business honestly. If he conducts the business dishonestly then he is not entitled to receive the reward of his services.

6. CONCLUSION:
To conclude I can say that. An agent is authorized to create a contract between his principal and third party. An agent can be sued on his personal liabilities and the authority of an agent can be revoked.

About the Author

Omar Ejaz Advocate is Head of Law Firm "Omar Law & Associates". He also a Senior Examiner for a major exam board.

He was educated at Government college Lahore and University of The Punjab. He previously held lecturing at Pakistan College of Law and Quaid-e-Azam Law College in Lahore from 2007-2009 and University Law College in PU from 2008-2009 before becoming a Teacher at Superior College of Law Lahore during 2009. He also Head a firm of Criminal Defence Solicitors in Lahore

Website: <a target="_new" href="http://www.omaradvocate.com">http://www.omaradvocate.com</a>

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