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BUSINESS LAW

CASE ANALYSIS
CONTRACT OF AGENCY
FACTS
• Krishna employes Laya as her agent for selling her property which is at
Chennai. Laya makes her brother as her agent for the same purpose without
the consent of Krishna. Laya’s brother sells the property for 2 lakhs and he
hand over 150000 to Laya. She handover 150000 rupees to Krishna. Later
Krishna came to know that her property was sold for 2 lakhs and someone
other than Laya acted as her agent. Krishna filed a case against Laya to
claim for her loss of 50000 rupees.
ISSUE DESCRIPTION
• Can Laya appoint her Brother as her agent?
• Can Krishna Claim for 50000 rupees?
ISSUE ANALYSIS
• Agent cannot act on his own
• Once delegated cannot be further delegated
DECISION
• Laya cannot appoint someone as her agent without the consent of Krishna
• Laya is liable to pay 50000 rupees to Krishna

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