AGENT AND PRINCIPAL: RIGHTS, DUTIES AND LIABILITIES OF PRINCIPAL AND AGENT: SCOPE AND LIMITATION, RATIFICATION AND REVOCATION OF AUTHORITY

AUTHORS – AARYAN RAJ KAUSHIK, STUDENT AT NATIONAL LAW UNIVERSITY ODISHA, CUTTACK

BEST CITATION – AARYAN RAJ KAUSHIK, AGENT AND PRINCIPAL: RIGHTS, DUTIES AND LIABILITIES OF PRINCIPAL AND AGENT: SCOPE AND LIMITATION, RATIFICATION AND REVOCATION OF AUTHORITY, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (4) OF 2025, PG. 289-295, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT

This paper examines the legal framework governing agency under the Indian Contract Act, 1872 is investigated to find out its relevance in modern commerce. It discusses the creation of the principal agent relationship, the jurisdiction in which it occurs, the powers and duties of the parties and the responsibilities of the parties. The sections 182 to 238 of the Act constitute a sound base for appreciating the principal and agents’ relationship, taking into consideration the details of key case laws.

The discussion also brings out the obligations and rights of both parties, the principal’s right to indemnity as held in Lloyd v Grace, Smith & Co. Retrospective validation of unauthorized acts through ratification is investigated as a means to enable trade based on transactional efficiency. Panorama Developments v Fidelis Furnishing Fabrics Ltd goes on to set out the scope of an agent’s authority is, i.e., express, implied, apparent.

There is also analysis of the limitations of authority and revocation in particular in irrevocable agencies. Globalization and Digital Commerce present a critical challenge in agency law, where traditional principles of agency law are increasingly limited.

The paper finally calls for several and much needed reforms in the Indian Agency Law. The Law should be adequately updated to address digital age complications and to step up safeguard against abuse of the power. The paper finishes with a call for striking this balance of rights, duties and liabilities so as to preserve the efficiency and adaptability of agency relationships in a haphazardly evolving commercial landscape.