Law of agency : CONTRACT ACTS 1950,section

vid 24

content
1.right and duties of agent
2.agent and 3rd party
3.termination of agency

Definiton
what is agent ?
- represent owner
- principal : owner agen : appointed on behalf of principal
- not a party to contract, instead just a representative

2 contracts :
i. principal and agent
ii. principal and buyer

req of principal and agent:

1.18 above
2.soundmind
3. not bankrupt

NO NEED IN WRITTEN FORM

creation of agency : 5 ways

1. express appointment by principle : "i would like to hire you as an agent
"oral,verbal
2. implied terms by principle : indirectly eg, you will sell my tudung w a
payment right ?
3. ratification by principle : no expression of agency , publicly,
4. appointment by neccesity : depserate sistuation whereby the agent cannot
communicate with the principle, and do decision
on hiw own beyond his power for the interest of
principle
5. appointment by Estoppel : authorised by principle
: eg, a want to sell to b and mentioned that
anthing can be discusses with C

vid 25
1.rights and duties of agent
rights of agent : 1.remuneration - payments, upah jadi agen,fees
2.commision - based on sale the agent have done
3.indemnify - expenses occur during the agency, will be paid by
principal
4.lien - mortgage for agent, keep the property of the principal
until the principal pay
5.compensation - compensate for damages, health isuee during
agency borne by prin

duties of agent : 1. obedience - follow principal's orders

2. skills and diligence - have certain skills for that specific
business
3. agents account - to separate from indvidual accunt
4. communication - communicate w prinipal
5. pay sums to the principal
6. no conflict of interest - for interest of principal only, not
your own
 7. no secret profits - bribes etc

2.agent and 3rd party

: general rule - agent has no right and respnsibilities since it will only binds
principle and 3rd party (buyer) EXCEPT :

1. Agent is the principal himself

2. Agent does not diclosed to 3rd party (buyer) that he is the
principle himself
3. Agent mentioned that he is liable to the contracts, so he
will be liable
4. Trade
5. principal is of no existence
6. agent breach the contract by disobey principal, so he will be
liable

3. Termination of agency: acts of parties

1. mutual agreememnt
2. either of them withdraw to be agent or principal
3. by perfomance - for one project only, if the project
is done, terminated
4. by agency period - 1 year

5. death, insane or bankrupt for either principal or

agent

6. frustration - terminated by frustration, beyond

control, gods