Section 182 of the contract act defines, “An agent is a person employed to do any act for another or to represent another in dealings with third persons. The person for whom such act is done, or who is represented, is called the principal”. The function of an agent is essentially to bring about contractual relations between the principal and third parties. An agent has certain rights, duties and liabilities towards the principal and third parties depending upon the nature of business. These rights, duties and liabilities can be generated as:- Rights of an Agent i) Right to ...

An "agent" is a person employed to do any act for another, or to represent another in dealing with third persons. The person for whom such act is done, or who is so represented, is called the "principal". As between the principal and third persons, any person may become an agent, but no person who is not of the age of majority and sound mind can become an agent, so as to be responsible to the principal according to the provisions in that behalf herein contained. No consideration is necessary to create an agency. The authority of an agent may be express or implied. An authority is said to be ...

When the rights and obligations arising out of a contract are extinguished, the contract is said to be discharged or terminated. In other words, discharge of a contract means termination of the relationship between the parties to a contract. The ways of discharging a contract can be discussed as:- i) Discharge of Contract By Performance: When a contract is duly performed by both the parties within the specified time and in the manner prescribed, the contract is said to have been performed and discharged. Performance may be: (a) Actual (b) Attempted. Actual Performance: When each party ...

Two or more persons are said to consent when they agree upon the same thing in the same sense. Consent is said to be free when it is not caused by- Coercion, as defined in section 15, or Undue influence, as defined in section 16, or Fraud, as defined in section 17, or Misrepresentation, as defined in section 18, or Mistake, subject to the provisions of sections 20, 21, and 22. Consent is said to be so caused when it would not have been given but for the existence of such coercion, undue influence, fraud, misrepresentation, or mistake. Coercion: "Coercion" is the committing, ...

Classification of Negotiable Instruments 1)   Inland Instrument- A promissory note, bill of exchange or cheque which is 1) both drawn or made in India and made payable in India, or 2) drawn upon any person resident in India, is deemed to be an inland instrument. A bill of exchange drawn upon a resident in India is an inland bill irrespective of the place where it was drawn. 2)   Foreign Instrument- An instrument, which is not an inland instrument, is deemed to be a foreign instrument. Foreign bills must be protested for dishonor if such protest is required by the law of the ...

A Hundi is a negotiable instrument written in an oriental (vernacular) language.  The term ‘Hundi’ includes all indigenous negotiable instruments whether they are in the form of notes or bills.  But they are mostly of the nature of bills of exchange.  They are virtually inland bills of exchange and recognized by custom and law in India.  The term comes from the Sanskrit word Hund which means to collect.  It means that Hundis were used as means of collection of debts.  Hundis are very popular among the Indian merchants and indigenous bankers from ancient times. The Negotiable ...