A directs B, his solicitor, to sell his estate by auction, and to employ an auctioneer for the purpose. B names C, an auctioneer, to conduct the sale.C is not a sub-agent, but is A’s agent for the conduct of the sale.
Refer S.194 illustration b When an agent has an express or implied authority of his principal to name another person to act for the principal and the agent names another person accordingly, such person is not a sub-agent but a substituted agent of the principal in respect of the business which is entrusted to him”.
A without authority of B lends money of B to C. Afterwards, B accepts interest on money from C. B’s conduct lead to agency by ratification.
Refer S.197 illustration b Ratification may be express or implied.
“A” gives authority to “B” to sell ‘A’s land and to pay himself out of the proceeds,the debts due to him from A .In the absence of an express contract “A” cannot revoke this authority nor can it be terminated by his death or insanity.
Refer S.202 illustration a The authority given to an agent cannot be revoked where the agency is coupled with interest.
A power of attorney executed by ‘A’ in favour of ‘B’ remains valid and effective notwithstanding death of ‘A’ if the same has been executed for consideration.
Refer S.202 illustration b Because the same had elements of a commercial transaction which cannot be allowed to be frustrated on account of death of the executants
Ramesh employs Suresh to beat Mahesh. Ramesh promises to indemnify Suresh against all the consequences of the act.Suresh beats Mahesh and has to pay damages to Mahesh for the beatings committed upon him.Ramesh is not liable to indemnify Suresh for those damages
Refer Similar to S.224 illustration a The agent cannot claim indemnity in respect of acts which are apparently unlawful or criminal
X, a publisher of a newspaper, agrees to publish at Y’s request a defamatory article in respect of Z as Y agrees to indemnify X against the consequences of the publication. In a Suit by Z, X has to pay damages and incur expenses.Yis not liable as the act was criminal.
Similar to S.224 illustration b The agent cannot claim indemnity in respect of acts which are apparently unlawful or criminal
An agent, at the time of making the contract does not disclose the name and address of his principal but it comes known to the second party afterwards. In case of any default the second party may file a suit against Either agent or principal or both.
Refer S.226 Where the agent does not disclose the name of his principal, but discloses his own representative character, the contract will be the contract of the principal, unless there is something in its form or signature to show that the agent intended to be personally liable.
‘A’ enters into a contract with ‘B’ to sell him 100 bales of 12 cotton, and afterwards discovers that ‘B’ was acting as agent for ‘C’. For the price of the cotton ‘A’ may sue against ‘B’ or ‘C’ or both.
Refer S.233 illustration If the third party comes to know the existence of the principal before obtaining judgment against the agent, he may sue either the principal or the agent or both
A consigns goods to B for sale and gives him instructions not to sell under a fixed price. C, being ignorant of instructions, given to B, enters into a contract with B to buy the goods at a price lower than the reserved price.A is bound by that contract.
Refer S.237, illustration a Agency by estoppel is created when the alleged principal by his conduct or by words spoken or written, leads wilfully the other contracting party into an honest belief that the supposed agent had authority to act as such and bind the principal.
X entrust Y with negotiable instruments endorsed in blank. Y sells them to Z is violation of private orders from X. The sale is Valid.
Refer S.237, illustration b Agency by estoppel
A, the captain of B’s ship, signs of bill of lading without having received on board the goods mentioned therein. The bills of lading are void as between B and the pretended consignor.
Refer S.238 illustration b The principal is liable for misrepresentation made or fraud committed by the agent acting within the scope of his actual or apparent authority during the course of the agency business.
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