Explain the ingredients of an agency contract.

Ingredients of an agency contract The Contract of Agency is governed by chapter X (sections 182 to 238) of the Indian Contract Act, 1872. The basic ingredients of agency contracts are as follows: Authority should be given either expressly or impliedly to bind his principal. While the principal should not be a minor, an agent could be a minor. Consideration is not necessary. For the acts of the agent, the principal is liable unless the principal has exceeded his authority. The authority of an agent extends to the doing of all that is necessary and collateral to the doing of the main act. The obligations under the Contract of Agency are not assignable unless: The nature of the business necessitates such assignment. Customs or usage of trade in the locality with regard to the business permit such assignment. Such assignment is expressly permitted by the Contract of Agency.