DELEGATION OF AUTHORITY

Sub agent
He is a person employed and acting under the control of original agent in the business of agency. He is the agent of original agent.

Co-agent or substituted agent

He is not a sub agent but an agent of principal for such part of business

RELATIONS OF PRINCIPAL WITH THIRD PARTIES

Extent of agents authority: Authority of agent to bind the principal may be-- 1.Actual authority: It is conferred to him, may be express or implied authority 2.Ostensible authority: It is also called as apparent authority the principal is bound by the act of the agent.

POSITION OF PRINCIPAL AND AGENT IN RELATION TO THIRD PARTIES

1.Named principal 2.Unnamed principal 3.Undisclosed principal 1.Named principal: A)Acts of the agent are the acts of the principal: B)When the agent exceeds his authority: Eg: A authorize p to buy 10 sheeps but p buys 10 sheeps and 5 lambs A may repudiate the whole transaction

 C)Notice given to the agent as notice to principal: D)Principal inducing belief that agents unauthorised acts were authorised: agency by estoppel Not created by principal and agent imposed by law : when a principal acts in a way to lead a third party believe that another is the principal's agent and the third party is injured by relying on and acting in accordance with that belief Note: A principal has a duty to correct a third party's mistaken belief in an agent's authority to act on the principal's behalf. E)Misrepresentation or fraud of agent

 2.Unnamed principal: Unnamed principal means whose existence is disclose but the name is not disclosed. However in case agent declines the identity of the principal, he becomes personally liable on the contract.

 3.Undisclosed principal: Where an agent, having authority to contract on behalf of another, makes the contract in his own name (as he himself is principal), concealing not only the name of his principal but also the fact that there is a principal, his principal is called undisclosed principal. A) position of principal(he may sue either the principal or agent or both) B) position of agent(he has all rights of an agent against the principal) c) position of third parties(third party can elec to sue either the principal or agent or both)

PERSONAL LIABILITY OF AGENT

When the contract is expressly provides When the agent acts for foreign principal When he acts for an undisclosed principal Where he signs the contract of his own name When he acts for principal not in existence

TERMINATION OF AGENCY
By the act of parties By the operation of law By the act of parties 1.Agreement 2.Revocation by the principal 3. Revocation by the agent

By the operation of law

Performance of contract Expiry of time Death or insanity Insolvency Destruction of subject matter Principal becoming an alien enemy Dissolution of a company Termination of sub agents authority.