Classification of Agency PDF

CLASSIFICATION OF AGENCY
Classification of
Agency
Classification According Classification

to the According Function
Extent of Authority
1)Del Credere Agent

A universal agent
2) Factors
A general agent
3) Brookers
A special agent
4) Auctioneers
Agency : Dr. Zuraidah 5) Bankers 1
Authority and Power under Agency Law
• Authority means the power, right or commission that the agent has
or appears to have to do acts or to make contracts with third parties
on the principal’s behalf
• When principal confers authority means the principal and agent have
agreed that certain acts should be done by the agent on the
principal’s behalf. ( not confer power)
Agency : Dr. Zuraidah 2

• Power is strictly a legal concept
• The difference between these two is that power
may exist where authority is lacking and both
came from different sources,
• The existence and extent of power is determined
by public policy whilst authority on the other hand
is limited by the expression of the principal’s will
as agreed in the agreement
• Hence in some cases an agent who is neither
expressly nor apparently authorized to do certain
things may have power to bind his principal and
confer rights on a third party.

Kind of Agency
• Various classification of agents.
• They may be classified according to the followings
a) The extent of their authority
b) According to their function.
Classification According to Extent of
Authority
a) A universal agent:
- a general agent with extensive power.
- He can do all acts which a principal may personally do.
- It may be made in form of General power of Attorney.
- Principal rarely grant such extensive power unless there is a compelling reason.

b) A General Agent
- Who is employed to act on behalf of his principal, in
transaction relating to a particular trade or business.
- A third party, dealing with a general agent can
assume that the agent has power to do all that is
usual in his course of business and trade,
- Not affected by any types of limitation unless there is
any.
c) Special Agent
- An agent appointed to do a specific act or fpr a
specific purpose and his authority is limited to that act
or purpsoe
Classification According to Functions
a) Del Credere Agents-
- An Agent who in consideration of extra commission undertakes that
the third party, with whom he enters into contract on his principal’s
behalf will perform his liability
- If third party fails to perform his obligations, the del credere agent
will be liable for it.
.
• b) Factors
- Commercial agent
- Entrusted with goods of his principal for sale sells good in his own
name.
- He usually sells the goods in his own name without disclosing his
principals.
- He has a lien over the good in his possession, as a commission.
c) Brokers
- A commercial agent who is employed to make contracts
between his principal and third parties for a commission
called a brokerage.
- Different from factors : not entrusted with possession of
the goods and cannot contract in his own name.
- His job is to find purchasers for those who wish to buy
and sellers for those who wish to sell. Then the broker will
negotiate and make contracts,
- Once the contract has been entered between the
principal and third party, a broker will receive
commission.
- -insurance : the broker is an agent of the insured and his
duty to seek out appropriate insurers on behalf of his
client.
- He will be liable to the insured for the loss caused by his
negligent act which causes loss to his client.
4) Auctioneers.
- An Agent employed to sell goods by auction.
- He is an agent for the seller and the buyer.
- He has a discretion as to the prince at which the goods should be sold
but if the seller fixes a min or reserve a price, the auctioneer will be
liable in damages to the seller if he sells the goods below the reserve
price.
4) Banker : Need to look from different perspective
a) Banker as an agent for customer
- Banker and customer is contractual. Debtor creditor
relationship
- A banker receives money for deposit from as customer, he
is regarded as a debtor to his customer ( borrowed money
from customer)
- When a banker advances money as a loan to his customer
or whether the account is in debit, the banker position is
that if a creditor.
b) Bank employee as agents for the bank
- In the operation of a bank
- They owes duty to their employer and the bank owes duty
to its customer.
- The bank as employer is vicariously liable for torts
committed by its employees in the course of their
business

Classification of Agency PDF

Uploaded by

Copyright:

Available Formats

Classification of Agency PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Classification of Agency PDF

Uploaded by

Copyright:

Available Formats

CLASSIFICATION OF AGENCY

Classification According Classification

1)Del Credere Agent

Agency : Dr. Zuraidah 2

Agency : Dr. Zuraidah 3

Agency : Dr. Zuraidah 5

You might also like