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Law of Agency - Essay Example

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Law of Agency

1. By Direct appointment: When the agent's authority is express he is said to be directly appointed. The authority is said to be express when it is given by words spoken or written e.g. A by a letter appoints B his agent.
2. By Implication: Agency is implied when it is to be inferred from the conduct, situation of parties, mediary course of dealings, the necessity or circumstances of the case, e.g. master and servant, husband and wife, a person left in charge of the shop by the owner.
3. By Necessity: Agency by necessity arises when a person under certain circumstances acts as an agent of another without authority of that other. Such agency arises under extraordinary situations, e.g. a deserted wife pledges her husband's credit for necessaries of life; a master of ship can pledge the owners credit for necessary repairs during voyage, carrier of goods.
4. Agency By Esstoppel: When a person by his words or conduct willfully leads another to believe that certain set of circumstances or fact exist, and that other person has acted on that behalf, he is estopped from denying the truth of his statement.
Any person who is of the age of the age of majority according to the law to which he is subject, and who is of sound mind, may appoint an agent. Thus a minor being incapable to contract cannot be a principal. This is because principal is the person who is personally liable on the contract, and a minor being incompetent to contract under section ten of the Contract Act cannot become principal so as to incur such liability.
Minor as Agent
Any person may become an agent, but no person who is not of the age of majority and of sound mind can become as agent so as to be responsible to his principal. In other words, if a person employs an agent who is a minor, the acts of the minor would bind the principal so far as they are done in the regular course of his agency, but if, that ...Show more


A law is a regulation imposed by the government or ruling body of any country. A law can be for anything practical and rational, and can be imposed all over the country or in any specific area of a country, as deemed suitable by the government in order to ensure appropriate behaviour of the people which are the citizens of the country.
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Law of Agency essay example
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