As a rule, an agent cannot deal on his account. Accordingly, auctioneers, factors, directors of companies, brokers, estate agents, and other agents in whom confidence is reposed have, generally speaking, no power to delegate their authority. The agent is not liable. The making of rules and regulations is also legislation. Sometimes the circumstances of the case imply authority to redelegate certain duties, where it is unreasonable to suppose the agent would personally perform them.
The parity between authority and responsibility will be essential for achieving efficiency. In addition, an agency may be terminated by operation of law. Where the principal has expressly authorized the agent to delegate his power. One of the pivotal principles of : that a delegate cannot delegate. The Indian Post Office could not pay to the sender. The function of a Judge is only to apply the law least concerned with the method adopted by the parliament or legislature of any country. A sub-agent has to be distinguished from a substituted agent.
Reason is the soul of law and when the reason goes away, the law should also go. Agents must keep accurate records and accounts of all transactions and disclose these to the principal once the principal makes a reasonable demand for them. They left the gaps to be filled in by some other agency and in such a state of affairs. A principal may have mutual confidence in his agent but not in the subsequent sub-agent appointed by the agent. The third person should not know that the person is acting as an agent.
In that case, the agent agreed to accept such remuneration as should be deemed fit. The court repelled the contention that it was very unreasonable to expect that the principal should inform the whole world that he has cancelled the power of attorney given to his agent and that he cannot be expected to approach everybody with whom the agent was likely to enter into a contract and inform him of the cancellation. One day, her neighbor, Amir wished to go back to his hometown in Kedah and Anis requested him to send 3 baskets of ikan keli to her agents in Ipoh. The auctioneer afterwards becomes insolvent without having accounted for the proceeds. Occasionally, though, an agent who acts merely as a middleman may serve both parties to a transaction without notifying either. Barclays Bank : A sub-agent failed to insure the principal's goods, which were destroyed by fire.
The rule prohibiting delegation may not apply where the principal knows of the agent's intention at the time of his employment to delegate, or subsequently acquiesces in the delegation, or where the very nature of the employment necessitates a partial or total delegation. However, the minister is ultimately responsible for decisions taken on his or her behalf. It was stated: But the exigencies of business do from time to time render necessary the carrying out of the instructions of a principal by a person other than the agent originally instructed for the purpose, and where that is the case, the reason of the thing requires that the rule should be relaxed, so as, on the one hand, to enable the agent to appoint who has been termed 'a sub-agent' or 'substitute'; and, on the other hand, to constitute, in the interest and for the protection of the principal, a direct privity of contract between him and such substitute. There are exceptions to the duty to obey instructions. But every person, who does something for the other is not necessarily an agent, for example, a contractor employed to carry on some construction work is not necessarily the agent of the principal. For this trouble he was bribed by a large amount of money. The liability of the principal to a third person upon a transaction conducted by an agent is based upon facts such as: A principal may be liable to a third person on account of a transaction with an agent because of the principles of estoppel, restitution, or negotiability, although he may not be subject to liability based on principles of agency.
An undisclosed principal on the other hand is the one whose identity and existence is unknown to the third party. When is the act complete and secondly, is the act a result of the agent's services? For example, an instruction may have terms an agent does not understand. Also not all those who describe themselves as agents will, in law, be considered as agents. The agent may not be competent to contract. Goods sent to the sub-agent under instruction of the agent are deemed to be in the custody of agent, ie, in his constructive custody, and the custody will be deemed to be custody of the principal. Law is based upon the justice and reason and when the reason goes away, the law should also go away, is applicable. Relation between principal and person duly appointed by agent to act in business of agency:- Where an agent, holding an express or implied authority to name another person to act for the principal in the business of the agency, has named another person accordingly, such person is not a sub-agent but an agent of the principal for such part of the business of the agency as is entrusted to him.
Lee, Australian Administrative Law: Fundamentals, Principles and Doctrines , 2007. In this passage Coke is discussing Distraint of Knighthood, the writ by which holders of knight's fees were compelled to accept knighthood or pay a fine. Nevertheless, a distinction is usually drawn between the standard of care to be observed in each case. Thus, where an agent was appointed to secure orders for advertisements in a newspaper, the commission in respect of an advertisement being payable when it was published, the agent was held entitled to commission on orders actually obtained by him although the advertisements to which the orders related were not published until after the termination of employment. As such, an agency may terminate in the same way as a contract is discharged except where the agency is irrevocable.
In interpreting an Act of legislature the duty of Court is to determining the intention of the legislature by words used. Liability for remuneration arises only when it is earned i. As a general rule, an agent who enters into a contract on behalf of his principal is not entitled to sue personally nor is he personally liable on the contract. Huius modi autem iura sive iurisdictidnes ad personas vel tenementa transferri non poterunt, nec a privata persona possideri, nec usus nec execution iuris, nisi hoc datum fuerit ei de super, sicut jurisdictio delegate non delegari poterit, quin ordinaria remane at cum ipso rege. The agent must have altered his own position i. If no suitable publication exists, notification by other means reasonably likely to inform third parties—for example, posting a notice in public places or at a website—may be enough.
It is the duty of an agent, in cases of difficulty, to use all reasonable diligence of communicating with his principal, and in seeking to obtain his instructions. He was dismissed in Nov. The merchant employs a ship surveyor of good reputation to choose a ship for the principal. C sent the cheque to D bank who in turn sent it for collection to B bank, but it did not make the payment, and suspended payment. Accordingly, an estate agent who acts for both the vendor and purchaser in a sale and purchase property transaction must disclose the fact to both the vendor and the purchaser and obtain their consent for so acting. B is not responsible to A for the proceeds.