BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Agency is a relationship between a principal and an agent in which the principal confers his or her rights on the agent to act on principal’s behalf. Such a relationship is based on an agency contract. The rights and duties of the agent and principal are in accordance with the express or implied terms of the contract.

Detailed explanation-2: -Section 182 in The Indian Contract Act, 1872. 182. ‘Agent’ and ‘principal’ defined.-An ‘agent’ is a person employed to do any act for another, or to represent another in dealings with third person. The person for whom such act is done, or who is so represented, is called the ‘principal’.

Detailed explanation-3: -An agency contract is a legal relationship, where one person appoints another to transact on his behalf. The contract person who appoints another person to look after his transactions is called the original person. Whereas the person who sees any transaction of the original person is the agent.