- Posted by catsys
- On 28 kwietnia 2023
As a copy editor with expertise in SEO, I understand the importance of creating content that is not only well-written but also optimized for search engines. In this article, I will discuss the topic of „agency by way of agreement” and the section of law that covers it.
Firstly, what is agency by way of agreement? In simple terms, it refers to an arrangement in which one person (the agent) agrees to act on behalf of another person or organization (the principal). This agreement is usually formalized through a written contract or agreement.
Now, the question is, which section of the law covers agency by way of agreement? The answer lies in the Indian Contract Act, 1872. Section 182 to Section 238 of the Act deals with the various aspects of agency, including creation, rights, and duties of the agent and principal, termination of agency, and so on. Section 182 specifically defines the term „agent” and Section 183 explains the different ways in which an agency can be created, including by agreement.
Section 185 of the Act lays down the duties of an agent towards the principal, which include obeying the principal`s instructions, maintaining the utmost good faith, providing accurate information about the agency`s transactions, and accounting for any gains made from the agency. On the other hand, Section 186 lists the rights of the agent, such as claiming remuneration for services rendered and receiving indemnity for expenses incurred during the execution of the agency.
The Act also specifies the circumstances under which an agency can be terminated, such as by the completion of the agreed-upon task, expiration of the agency period, or mutual agreement between the agent and principal. Section 210 of the Act deals with the termination of an agency at will, where either party can terminate the agency at any time by giving reasonable notice to the other.
In conclusion, agency by way of agreement is governed by the Indian Contract Act, 1872. Sections 182 to 238 of the Act outline the various aspects of agency, including creation, rights, and duties of the agent and principal, termination of agency, and more. It is essential to understand the provisions of the Act when entering into an agency relationship to ensure that the rights and obligations of both parties are clearly defined and adhered to.