 A consensual relationship in which one (the

agent) holds in trust for and subject to the

control of another ( the principal) a power
to effect certain legal relations of that
others’ .
 Requirements are : A representations, a
reliance on that representation, alteration of
a party’s position as a result of that reliance
 Generally one who is employed so as to bring his
principal into contractual relationships with other
persons. An agency can be created: by express
agreement, verbally or in writing; by implication or
conduct; by necessity, as when a person has been
entrusted with another’s property, the preservation
of which requires certain actions, e.g., feeding and
stabling an animal. (‘In considering what is
reasonably necessary any material circumstances
must be taken into account , e.g., danger, distance,
accommodation, expense, time and so forth’).
 An agency may be terminated by law or actions of
parties
 A principal’s duties are generally
1. To pay the agent his agreed
remuneration
2. To indemnify the agent against
expense, liabilities and claims
incurred in discharging the agency.
 An agent’s duties are
o To respect his principal’s title.
o To exercise his duty with appropriate care
and skills.
o To perform those duties personally.
o To avoid conflict between his personal
interest and those of the principal .
o To account for and hand over to the principal
all money due.
o One who bribes an agent can be required to
account for profits.
 Agent’s remedies includes:
o Claim for the breach of contract
Set off, lien on goods , action for taking
an account.
 Principal’s remedies includes:
o Dismissal, claims for conversion or
breach of contract .
 A self-employed intermediary who has
continuing authority to negotiate the
sale or purchase of goods on behalf of
an other person (the principal), or to
negotiate and conclude the sale or
purchase of goods on behalf of and in
the name of the principal .