Section 182 defines the terms ‘Agents’ and ‘Principal’ as follows:
” An agent is a person employed to do any act for another or to represent another in dealings with a third person. The person for whom such act is done, or who is so represented is called the principal.”
In an agency, one person (principal) employs another person (agent) to represent him or to act on his behalf, in dealings with a third person. The act of the agent binds the principal in the same manner in which he would be bound if he does that act himself.
Explaining the definition of the agent as stated in Section 182, Dhavan J. Observed:
” According to this definition, an agent never acts on his behalf but always on behalf of another. He either represent his Principal in any transaction or dealings with the third person or performs an act for the principal. In either case, the act of the agent will be deemed in law to be not his own but of the principal. The crucial test of the status of an agent is that his acts bind the principal.”
Different kinds of Agents:
(1)- Auctioneers: An auctioneer is an agent whose business is to sell goods or other property by auction I.e. by open sale. The authority vested in him is to sell the goods only, and not to give warranties on behalf of the seller unless expressly authorized by the principal. He is a mercantile agent within the meaning of Section 2(9) of the Sales Of Goods Act: “mercantile agent” means a mercantile agent having in the customary course of business as such agent authority either to sell goods, or to consign goods for the purposes of sale, or to buy goods, or to raise money on the security of goods”
(2) Factors: A factor is a mercantile agent who is entrusted with the possession of the goods for sale. According to Section 171 of The Indian Contract Act: ” A factor has the right of general lien over the goods belonging to his principal, which are in his possession, for the general balance of the account.”
(3) Brokers: A broker is an agent who has an authority to negotiate the sale or purchase of goods on behalf of his principal, with a third person. Unlike a factor, he has no possession of the goods.
(4) Del Credere Agents: Generally, the function of an agent is over after a contract is established between his principal and a third person. He is not answerable to his principal for the failure of the third person to perform the contract. A del credere agent is an exception to this rule. He is a mercantile agent, who, on the payment of some extra commission, known as del credere commission, guarantees the performance of the contract by the third person. If in such a case the third person, for instance, fails to pay for the goods supplied to him, the principal can bring an action against the del credere agent for the same.
I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.
If you are interested in participating in the same, do let me know.
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