CONTRACT OF AGENCY (part-7,8,9)

BY:ROHIT NANDAN RAI SHASHANKAR SHARMA PARAG DESHMUKH SOMIL PREMANI

PERSONAL LIABILITY OF AGENT

Agent can enforce contracts personally and be held bound for contracts entered into on behalf of his principal, if there is an agreement to the effect, express or implied. Section 230 lists the following cases where a contract to this effect shall be presumed to exist:1)Where the contract is made by agent for the sale or purchase of goods for a merchant resident abroad. 2) Where the agent does not disclose the name of his principal. 3)Where the principal, though disclosed, cannot be sued, for instance, where principal is minor.

Besides, agent incurs a personal liability in following case:A)Breach of warranty B)Where the agent expressly agrees to be personally bound. C)Where agent signs a negotiable instrument in his own name. D)Agent with special interest or with a beneficiary interest. E)When agent is guilty of FRAUD or MISREPRESENTATION in matters which do not fall within his authority. F) Where trade usage or custom makes agent personally liable. G)Where the agency is one coupled with interest.

TERMINATION OF AGENCY
Circumstances under which Agency Terminates or Comes to an END:A) On Revocation by the PRINCIPAL B) On the expiry of fixed period of time. C) On the performance of the specific purpose. D) Insanity or Death of Principal or Agent E) When subject matter is either destroyed or rendered unlawful. F) Insolvency of the PRINCIPAL. G) By renunciation of agency by agent.

WHEN TERMINATION OF AGENCY TAKES EFFECT??

 The termination of the authority of agent does not, so far as regard the agent, takes effect before it becomes known to him. {SEC-208}  As regards third parties, they can continue to deal with the agent till they come to know of the termination of the authority. {SEC-208} -EXAMPLE- A directs B, his agent, to pay certain money to C. A dies and D takes out probate to his will. B, after As death, but before hearing of it, pays the money to C. The payment is good as against D, the executor.  The termination of the authority of agent causes the termination of authority of all sub-agents appointed by him.

POWER OF ATTORNEY
MEANING-: SEC.2 (21) of STAMP ACT, defined POWER OF ATTORNEY as-: any instrument not chargeable with a fee under the law relating to court fees foe the time being in force, which empowers a specific person to act for and in the name of the person executing it. The person executing the deed-:PRINCIPAL or DONOR. One in whose favour its executed-: AGENT/POWER AGENT/POWER OF ATTORNEY AGENT Donee may execute any instrument with his own name and signature and his own seal. A POWER OF ATTORNEY MAY BE SPECIAL OR GENERAL

REGISTRATION:As a general rule, registration of POWER OF ATTORNEY is not necessary. But, in order to recover the rents of an immovable property of DONOR for the DONEEs benefit, registration is required. For registration of POWER OF ATTORNEY, it must be duly authorized, executed and authenticated in a manner as mentioned in SEC-33 of Registration ACT-1908. It is executed before and authenticated by registrar or subregistrar. It is required to be engrossed on non-judicial stamp paper. SEC-4 of POWER OF ATTORNEY ACT provides that original deed can be deposited in HIGH COURT in whose jurisdiction the principal resides and a certified copy of deed can be obtained from HIGH COURT.

THANK YOU

FROM:- BACK BENCH ASSOCIATION AND JAGTE RAHO CLUB