Case study on personal liability of agency
Answers
Answer:
The circumstances under which an agent is personally liable to his principal acts are as follows:-
1. When he agrees with the concerned parties (Sec. 230).
2. An agent who is not having any authority to act as an agent or who has exceeded the authority and the same has not been ratified by the principal, is personally liable for any loss bearded by a third party (Sec. 235).
3. A person with whom a contract has been entered into in the character of agent is not entitled to require the performance of it, if in reality he was acting not as agent, but as principal (Sec. 236).
4. When he is acting for a foreign principal.
5. Where the agency is coupled with interest that is the agent has interest in the subject matter of the agency.
6. When the agent signs a negotiable instrument in his own name without making it clear that he is signing as an agent.
7. Where trade, usage or customs holds him liable in certain kinds of business.
8. Where the agent acts for a principal who cannot be sued an account of his being a foreign sovereign Ambassador Etc.
9. Where the agents acts for an undisclosed principal.
Answer:
ᴛʜᴇ ᴄɪʀᴄᴜᴍsᴛᴀɴᴄᴇs ᴜɴᴅᴇʀ ᴡʜɪᴄʜ ᴀɴ ᴀɢᴇɴᴛ ɪs ᴘᴇʀsᴏɴᴀʟʟʏ ʟɪᴀʙʟᴇ ᴛᴏ ʜɪs ᴘʀɪɴᴄɪᴘᴀʟ ᴀᴄᴛs ᴀʀᴇ ᴀs ғᴏʟʟᴏᴡs:-
1. ᴡʜᴇɴ ʜᴇ ᴀɢʀᴇᴇs ᴡɪᴛʜ ᴛʜᴇ ᴄᴏɴᴄᴇʀɴᴇᴅ ᴘᴀʀᴛɪᴇs (sᴇᴄ. 230).
2. ᴀɴ ᴀɢᴇɴᴛ ᴡʜᴏ ɪs ɴᴏᴛ ʜᴀᴠɪɴɢ ᴀɴʏ ᴀᴜᴛʜᴏʀɪᴛʏ ᴛᴏ ᴀᴄᴛ ᴀs ᴀɴ ᴀɢᴇɴᴛ ᴏʀ ᴡʜᴏ ʜᴀs ᴇxᴄᴇᴇᴅᴇᴅ ᴛʜᴇ ᴀᴜᴛʜᴏʀɪᴛʏ ᴀɴᴅ ᴛʜᴇ sᴀᴍᴇ ʜᴀs ɴᴏᴛ ʙᴇᴇɴ ʀᴀᴛɪғɪᴇᴅ ʙʏ ᴛʜᴇ ᴘʀɪɴᴄɪᴘᴀʟ, ɪs ᴘᴇʀsᴏɴᴀʟʟʏ ʟɪᴀʙʟᴇ ғᴏʀ ᴀɴʏ ʟᴏss ʙᴇᴀʀᴅᴇᴅ ʙʏ ᴀ ᴛʜɪʀᴅ ᴘᴀʀᴛʏ (sᴇᴄ. 235).
3. ᴀ ᴘᴇʀsᴏɴ ᴡɪᴛʜ ᴡʜᴏᴍ ᴀ ᴄᴏɴᴛʀᴀᴄᴛ ʜᴀs ʙᴇᴇɴ ᴇɴᴛᴇʀᴇᴅ ɪɴᴛᴏ ɪɴ ᴛʜᴇ ᴄʜᴀʀᴀᴄᴛᴇʀ ᴏғ ᴀɢᴇɴᴛ ɪs ɴᴏᴛ ᴇɴᴛɪᴛʟᴇᴅ ᴛᴏ ʀᴇǫᴜɪʀᴇ ᴛʜᴇ ᴘᴇʀғᴏʀᴍᴀɴᴄᴇ ᴏғ ɪᴛ, ɪғ ɪɴ ʀᴇᴀʟɪᴛʏ ʜᴇ ᴡᴀs ᴀᴄᴛɪɴɢ ɴᴏᴛ ᴀs ᴀɢᴇɴᴛ, ʙᴜᴛ ᴀs ᴘʀɪɴᴄɪᴘᴀʟ (sᴇᴄ. 236).
4. ᴡʜᴇɴ ʜᴇ ɪs ᴀᴄᴛɪɴɢ ғᴏʀ ᴀ ғᴏʀᴇɪɢɴ ᴘʀɪɴᴄɪᴘᴀʟ.
5. ᴡʜᴇʀᴇ ᴛʜᴇ ᴀɢᴇɴᴄʏ ɪs ᴄᴏᴜᴘʟᴇᴅ ᴡɪᴛʜ ɪɴᴛᴇʀᴇsᴛ ᴛʜᴀᴛ ɪs ᴛʜᴇ ᴀɢᴇɴᴛ ʜᴀs ɪɴᴛᴇʀᴇsᴛ ɪɴ ᴛʜᴇ sᴜʙᴊᴇᴄᴛ ᴍᴀᴛᴛᴇʀ ᴏғ ᴛʜᴇ ᴀɢᴇɴᴄʏ.
6. ᴡʜᴇɴ ᴛʜᴇ ᴀɢᴇɴᴛ sɪɢɴs ᴀ ɴᴇɢᴏᴛɪᴀʙʟᴇ ɪɴsᴛʀᴜᴍᴇɴᴛ ɪɴ ʜɪs ᴏᴡɴ ɴᴀᴍᴇ ᴡɪᴛʜᴏᴜᴛ ᴍᴀᴋɪɴɢ ɪᴛ ᴄʟᴇᴀʀ ᴛʜᴀᴛ ʜᴇ ɪs sɪɢɴɪɴɢ ᴀs ᴀɴ ᴀɢᴇɴᴛ.
7. ᴡʜᴇʀᴇ ᴛʀᴀᴅᴇ, ᴜsᴀɢᴇ ᴏʀ ᴄᴜsᴛᴏᴍs ʜᴏʟᴅs ʜɪᴍ ʟɪᴀʙʟᴇ ɪɴ ᴄᴇʀᴛᴀɪɴ ᴋɪɴᴅs ᴏғ ʙᴜsɪɴᴇss.
8. ᴡʜᴇʀᴇ ᴛʜᴇ ᴀɢᴇɴᴛ ᴀᴄᴛs ғᴏʀ ᴀ ᴘʀɪɴᴄɪᴘᴀʟ ᴡʜᴏ ᴄᴀɴɴᴏᴛ ʙᴇ sᴜᴇᴅ ᴀɴ ᴀᴄᴄᴏᴜɴᴛ ᴏғ ʜɪs ʙᴇɪɴɢ ᴀ ғᴏʀᴇɪɢɴ sᴏᴠᴇʀᴇɪɢɴ ᴀᴍʙᴀssᴀᴅᴏʀ ᴇᴛᴄ.
9. ᴡʜᴇʀᴇ ᴛʜᴇ ᴀɢᴇɴᴛs ᴀᴄᴛs ғᴏʀ ᴀɴ ᴜɴᴅɪsᴄʟᴏsᴇᴅ ᴘʀɪɴᴄɪᴘᴀʟ.