BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Detailed explanation-1: -According to Indian Contract Act, 1872 “Contract of agency is a contract by which a. person employs another person to do any act for himself or to represent him dealing with third. person”
Detailed explanation-2: -A contract of agency can be made orally or in writing. Example of a written contract of agency is the Power of Attorney that gives a right to an agency to act on behalf of his principal in accordance with the terms and conditions therein.
Detailed explanation-3: -As per section 219, an agent has a right to receive the agreed remuneration or in absence of agreement, a reasonable remuneration for rendering the services to the principal that are not voluntary or gratuitous. He becomes eligible to receive the remuneration as soon as he completes the work that he undertook.
Detailed explanation-4: -There are 3 classes of agents: General agent, Special agent and Mercantile agent.