Agency Contracts
Agency Contracts
Contract of the agency is a legal relationship, where one person appoints another to perform on the transactions on his behalf.
The person who appoints the other to take care of his transactions is the principal. Whereas, the person who looks after the transaction of the principal is the agent. The Contract of the agency is a special contract under the Indian Contract Act, 1872.
Any person can become an agent between the principal and the third person. Generally, an agent does not have any personal liabilities towards the principal while contracting. Therefore the agent doesn’t need to be competent to contract.
