Posted February 1, 2014 by advocateguru in Learning Centre

Definitions of Agent and Principal

A person who has capacity to contract may enter into a contract with another

  • Either by himself, or
  • Through another person.


So when he adopts the latter course, he is said to be acting through an agent. An ‘agent’ is a person employed to do any act for another, or to represent another in dealings with third persons (Sec 182). The person for whom such act is done, or who is so represented is called the ‘Principal’.

The function of the principal is to bring his principal into contractual relations with third persons. This means that an agent is merely a connecting link between the principal and third parties.