Posted February 1, 2014 by advocateguru in Learning Centre
 
 

Essentials of relationship of agency

There are two essentials of the Relationship of Agency:-

1)       AGREEMENT BETWEEN THE PRINCIPAL AND THE AGENT.

Agency depends on agreement but not necessarily on contract. As between the principal and third persons, any person may become an agent. As such even a minor or a person of unsound mind may be an agent. And so thus the principal is however is liable for the acts of such an agent.

But no consideration is necessary to create an agency.

2)       INTENTION OF THE AGENT TO ACT ON BEHALF OF THE PRINCIPAL.

Whether a person does intend to act on behalf of another is a question of fact. Where a person does intend to act on behalf of another, agency may arise although the contract between the parties provides that there is no such relationship.


advocateguru