• Rashid Ali

Bahria University,
Oct 2023
 • AGENCY
• ESSENTIALS, PURPOSE
AND RULES OF AGENCY
• KINDS OF AGENT
• DUTIES OF AGENT

SCHEME OF • TERMINATION OF
AGENCY

PRESENTATION •
•
BAILMENT
ESSENTIALS OF BAILMENT
• DUTIES OF BAILOR
• RIGHTS OF BAILOR
• RIGHTS OF BAILEE
• DUTIES OF BAILEE
AGENCY
Agency

It is a two-party relationship in which one party (the agent) is

authorized to act on behalf of, and under the control of, the
other party (the principle).

oHiring a sales person to sell goods

oRetaining an advocate
oEngaging a real estate broker to sell a house
oHiring a corporate officer
AGENT
An agent is a person employed to do
any act for another or to represent
another in dealings with third persons.

PRINCIPLE

The person for whom such act in

done, or who is so represented, is
called the Principle.
 AGREEMENT
The relationship of agency is the result of an
agreement between the principle and agent.

INTENTION

Essentials
The agent must have intention to act on behalf of the
Principle. When agent enters into a contract for
of Agency himself, then the principle will not be liable.

CONTRACTUAL CAPACITY

The principle must be competent to contract. It means

a minor or a person of unsound mind cannot appoint
an agent.
Purpose of
agency

• It may be created to perform an

act, which the principle himself
could lawfully do.

• The object of agency should not

be criminal and contrary to
public policy.
Rules of Agency

• Whatever a person competent to contract can do himself,

he can do through an agent, except for acts involving
personal skill and qualification.

• The act of the agent are the acts of Principle. It means he

who acts through an agent acts himself.
 GENERAL AGENT

A general agent is appointed to do all acts

in connection with a particular business.
He can do any lawful act regarding that
Kinds of business.
agent
SPECIAL AGENT

A special agent is appointed to do a

particular act. As authority comes to an
end when the act is performed by him.
UNIVERSAL AGENT

It is the agent whose authority is

unlimited. He enjoys extensive powers to
transact any kind of business.

MERCANTILE AGENT

An agent operates on behalf of the

principal wrt commercial transactions.
Broker, Auctioneer, Banker, Commission
NON MERCANTILE AGENT

An agent operates on behalf of the

principal in doing such acts which are not
concerned with the business but are
connected with the rights/obligations of
the principal.
.
SUB-AGENT

A sub-agent is a person who does his

work under the control of the agent.
 • Duty to follow Principal’s Directions or Customs
• Duty to work with Reasonable Skills/ Diligence

DUTIES • Duty to Render Accounts

• Duty to Communicate in Difficulty
OF • Duty not to deal on His Own Account
AGENT • Duty not to make any Secret Profit
• Duty not to Delegate Authority
 • Agreement
• Revocation By The Principal
• Revocation By Agent
• Completion Of Business Of Agency
TERMINATION • Expiry Of Time
OF AGENCY • Death Of The Principal Or The Agent
• Insolvency Of Principal
• Destruction Of The Subject Matter
• Principal Or Agent Becomes Alien
Enemy
Bailment

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Bailment

A bailment is the delivery of goods by one person to another for

some purpose , upon a contract that they shall, when the purpose
is accomplished , be returned or otherwise disposed of according
to the directions of the person delivering them .
Bailment
Owner gives the custody and possession of his goods to another
person as a part of the contract. The goods would need to be
returned back to him.

• The owner who gives his goods is called Bailor

• The person receiving the goods is called Bailee

• The giving of goods is called Bailment

q Tailor- Washerman- LED Repairing

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Essentials of Bailment:

• Transfer of possession of goods/Delivery (Actual/constructive/Symbolic)

• Transfer is Temporary
• Contract
• Movable goods- (not for land and buildings)
• Return of goods
• Must be delivered to another person

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Types of Bailment:

• Reward point of view:

• Bailment for reward – (consideration/charges) Locker-
repair
• Gracious Bailment – (no consideration) lending bike/cycle)
From an Object point of view:
• Bailment for use (lend the camera against charges)
• Bailment for safe custody( Safekeeping)
• Bailment for carriage (railways/shipping/courier)
• Bailment for alteration in shape (
• Bailment for repair (carpenter)
• Bailment for pledge (security against loan)

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Is Deposit in Bank is Bailment ?

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Duties of Bailor

• Duty to disclose known defects

• Duty to bear extraordinary expenses of bailment
• Duty to receive back goods
• Indemnifying loss due to premature termination
• Indemnifying loss due to defective title
Rights of Bailor

Right to claim compensation for loss caused to the goods by the

negligence of the bailee

Right to claim compensation for unauthorized mixing of goods with the

bailee’s own goods

Right to claim damages for unauthorised use of goods

Right to demand goods back after the expiry of purpose or period

Rights of Bailee

Right to claim damages

Right to recover expenses
Right to deliver goods
Right to sue
Right of lien
Duties of Bailee

Duty of reasonable care

Duty not to make un-authorised use of goods
Duty not to mix bailor’s goods with his own
Duty to return goods
Case: Washing
for Repair
A person gave his washing machine for repair to a shop. As the shop did not
have space inside, it left the washing machine outside in its corridor. There
was no security or attendant for guarding the premises. The washing machine
was stolen.

Is the shop responsible for the loss of the washing machine to the owner?
… Cond

A person gave his washing machine for repair. The shop had stored it
properly and safely. However, an unprecedented rain created a flood
and all the washing machines in the shop as well as all the expensive
testing equipment of the shop got damaged.

Is the person responsible for the loss of the washing machine?

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