Distinguish between Special Agent and General Agent under Indian Contract Act, 1872
CS Executive · Economic, Business and Commercial Laws · PYQS · June 2024
Distinguish between Special Agent and General Agent under Indian Contract Act, 1872
Answer & Explanation:
According to Indian Contract Act, 1872 a 'Special Agent' is one who is appointed to do a specified act or perform a specified function. He has no authority outside this special task. The third party has no right to assume that the agent has unlimited authority. Any act of the agent beyond that authority will not bind the principal. According to Indian Contract Act, 1872 a 'General Agent' is appointed to do anything within the authority given to him by the principal in all transactions or in all transactions relating to a specified trade or matter. The third party may assume that such an agent has power to do all that is usual for a general agent to do in the business involved. The third party is not affected by any private restrictions on the agent's authority.
Topics: Indian Contract Act, 1872
Related Questions in this Topic
- Ramesh is purchasing a firm and goodwill of this firm run by two partners, Raj and Ram. This firm has been doing the bus...
- While walking in a community park, Chetna finds a lost book. She brings it back to her house and starts to read it. Late...
- C agrees to appoint B as his clerk to sell goods at a yearly salary upon A's becoming surety to C for B for his conduct ...
- A tendered to supply goods to B up to ₹50,000 for a period of one year. B ordered the goods up to ₹30,000 only. A wants ...
- Distinguish between the following: Novation and Alteration