The Rights Of An Agent

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Rights of an Agent

 

1. Right to Remuneration
An agent has a right to receive the agreed remuneration or in absence of agreement, a reasonable remuneration for rendering the services to the principal that are not voluntary or gratuitous. He becomes eligible to receive the remuneration as soon as he completes the work that he undertook.

 

2. Lien on Goods:
Some agents who have the possession of goods, securities or properties of their principal also have a lien on these goods, securities or properties regarding their remuneration and also for any expenses or liabilities that they incur. When he is an unpaid seller, he has a right to stop the goods in transit.

 

3. Right to be Indemnified:
An agent represents his principal to the third parties. As per sections 222 and 223, an agent has a right to be indemnified by his principal for all charges, expenses, and liabilities that he incurs during the course of the agency.

CHAIN OF CONTROL
iThe order in which authority and power in an organization is wielded and delegated from top management to every employee at every level of the organization. Instructions flow downward along the chain of command and accountability flows upward

SPAN OF CONTROL
ii. The number of subordinates that a manager or supervisor can directly control. This number varies with the type of work: complex, variable work reduces it to six, whereas routine, fixed work increases it to twenty or more.

 

 

*Agreement in Agency:*

An agency agreement is formed when one person, called the agent, is authorized by another person, called the principal, to act on the principal’s behalf. A principal who assigns agency to an agent is creating a legal relationship with the agent.

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*Agency by cohabitation:*

A cohabitation agreement is a form of legal agreement reached between a couple who have chosen to live together (whether they are heterosexual or homosexual). In some ways, such a couple may be treated like a married couple, such as when applying for a mortgage or working out child support.

 

*Estoppel:*

A legal principle that bars a party from denying or alleging a certain fact owing to that party’s previous conduct, allegation, or denial. The rationale behind estoppel is to prevent injustice owing to inconsistency or Fraud. There are two general types of estoppel: equitable and legal.

 

*Agency by implication:*

An agency relationship can be either express or implied. Agency is created by implication when, from the nature of the principal’s business and the position of the agent within that business, the agent is deemed to have permission from the principal to undertake certain acts.

 

*Agency by necessity:*

Agency by necessity is an agency created by an emergency arising from a situation making it necessary or proper for the agent to act without receiving the sanction or authorization of the principal, in order to prevent harm to the principal.

: *Rights of an Agent*

 

*1. Right to Remuneration*

An agent has a right to receive the agreed remuneration or in absence of agreement, a reasonable remuneration for rendering the services to the principal that are not voluntary or gratuitous. He becomes eligible to receive the remuneration as soon as he completes the work that he undertook.

 

*2. Lien on Goods:*

Some agents who have the possession of goods, securities or properties of their principal also have a lien on these goods, securities or properties regarding their remuneration and also for any expenses or liabilities that they incur. When he is an unpaid seller, he has a right to stop the goods in transit.

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*3. Right to be Indemnified:*

An agent represents his principal to the third parties. As per sections 222 and 223, an agent has a right to be indemnified by his principal for all charges, expenses, and liabilities that he incurs during the course of the agency.

*Duties of an Agent*

1.An agent shall work with reasonable skill and diligence. Also, where the nature of the agent’s profession requires him to possess a special skill, he shall exercise the skill that a member of that profession will exercise.

2. An agent shall disclose properly any material information to his knowledge to the principal that can influence the making of the contract.

3. An agent shall is under the duty not to disclose any confidential information of his principal.

4. An agent shall not compete with his principal. In other words, his interest shall not conflict with his duty.
It is the duty of the agent to keep true and fair accounts and prepare them on a reasonable notice to render them.

5 An agent shall not make any secret profit and shall disclose any extra profit he makes to the principal. Where the principal finds that the agent is making secret profits, he may dismiss the agent without notice, recover the amount of profit and also refuse to pay him his remuneration. He may also repudiate a contract where a third party is also involved in the fraud and recover the damages.

 

 

 

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