ENGLISH KA MAHASAGAR BY ADV.PANKAJ JOSHI

  Question 10 A appoints B to purchase certain goods on his behalf. B agrees to act for A and enters into negotiations with C. However, B does not disclose to C that he is acting as an agent for A. Later, A authorises B to appoint D to assist him in carrying out the work. B appoints D, who acts under B’s instructions. Explain, with reference to Sections 182, 183, 184, 185, 186 and 187 of the Indian Contract Act, 1872, the legal position regarding A, B and D. Answer: Section 182 — Agent and Principal: B is an agent because he is employed by A to do an act for A or represent A in dealings with third persons. A is the principal. Section 183 — Who may employ an agent: A, being competent to contract, can appoint B as his agent. Section 184 — Who may be an agent: Any person may become an agent. Therefore, B’s capacity to contract is not essential merely for acting as an agent. Section 185 — Consideration not necessary: No consideration is necessary to create an agency between A and B. Se...

  Question 10 A appoints B to purchase certain goods on his behalf. B agrees to act for A and enters into negotiations with C. However, B does not disclose to C that he is acting as an agent for A. Later, A authorises B to appoint D to assist him in carrying out the work. B appoints D, who acts under B’s instructions. Explain, with reference to Sections 182, 183, 184, 185, 186 and 187 of the Indian Contract Act, 1872, the legal position regarding A, B and D. Answer: Section 182 — Agent and Principal: B is an agent because he is employed by A to do an act for A or represent A in dealings with third persons. A is the principal . Section 183 — Who may employ an agent: A, being competent to contract, can appoint B as his agent. Section 184 — Who may be an agent: Any person may become an agent. Therefore, B’s capacity to contract is not essential merely for acting as an agent. Section 185 — Consideration not necessary: No consideration is necessary to create an agency between A and B....