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What Is Doctrine of Agency by Necessity
What Is Doctrine of Agency by Necessity
2. What is sub-agent?
According to section 191 a sub-agent “is a person employed by and acting under the
control of, the original agent in the business of agency. He is the agent of the original
agent”.
The agent is responsible to the principal for the acts of the sub-agent.
The sub-agent is responsible for his/her acts to the agent, but not to the principal,
except in case of fraud or willful wrong.
As the sub-agent is appointed without the consent of the principal the principal is
not responsible for the acts of the sub-agent to the third parties.
The agent is responsible for the acts of the sub-agent to the principal as well as to
the third parties.
The sub-agent is responsible for his/her acts to the agent and not to the principal.
1
LAW ON BUSINESS ORGANIZATION
If you appoint two estate agents to act together for you in selling the property, this is known
as ‘joint agency’ or ‘joint sole agency’. A joint sole agency contract is where the estate
agents involved share the commission when the property is sold. In practice, the agent that
actually finds the buyer usually gets a higher split of the commission but this percentage
share would need to be agreed at the start of the contract between owner and both agents.
Joint agency is often a useful way to get out of a sole agency before the end of the contract
– if you tell your estate agent that you’re not happy and are considering terminating their
contract at the earliest opportunity, then give them the option of being retained on a joint
agency basis, they might be smart enough to see the merits of a slice of a fee rather than
none at all. This type of agency is also useful when you want to use two agents that offer
different services (for example a town agent and a country agent if you live on the border
of a town). Do bear in mind the majority of the public have a negative perception about
properties on with more than one agent (“I’ve seen that before – there must be something
wrong with it”). If you’re thinking about joint agency, try to choose two agents that can
communicate/work together happily.
2
LAW ON BUSINESS ORGANIZATION
The demand made by one creditor upon one debtor, produces the effects of default
only as between them, but not with respect to the others.
The interruption of prescription caused by the demand by one creditor upon one
debtor, will not benefit the co-creditors; neither, will that demand interrupt the
prescription of the obligation as to the other debtor.
3
LAW ON BUSINESS ORGANIZATION
The insolvency of a debtor will not increase the liability of his co-debtors. Neither,
will it allow a creditor to demand anything from the co-creditors.
The vices of each obligation emanating from the personal defect of a particular
debtor or creditor will not affect the obligation or rights of the others.
A joint and solidary obligation or solidary obligation is one wherein either one of
several creditors has the right to demand full and complete compliance of an obligation
against either one of the debtors. In such an obligation, the debtors are sureties who are
liable for the full amount of the debt incurred by the principal debtor. A surety is liable
regardless of whether it benefitted from the debt incurred by the principal debtor