ROLE OF AN AGENT

An individual hired to do some act for another or to represent another in interactions with third parties is known as an agent.  The ‘principal' is the person by which such an act is performed or who is so portrayed. The 1872 Indian Contract Act makes no difference between various types of agents.  On the one hand, an agent may be designated by the principal; on the other hand, it may be employed by any entity approved by statute to do so. 
The Agent has certain responsibilities under Indian law. An agent is obligated to perform his principal's business in accordance with the principal's instructions or, in the absence of such instructions, according to the prevailing custom.  An agent is obligated to perform the agency's business with as much expertise as is reasonably possible.  An agent is obligated to provide his principal with correct accounting on request.  In tough situations, it is an agent's responsibility to communicate with his principal and seek his orders with all due caution.  If an agent deals with the agency's business on his own account, the principal may reject the transaction.
The act of the agent within the limits of his authority binds the principal, as seen in Palestar Electronics Private Limited v. Additional Commissioner . Contracts entered into by an agent, as well as duties arising from actions performed by the agent, can be executed and have the same legal implications as if the contracts were entered into and the acts performed by the principal in person.  For this result to occur, the agent must have performed the action within the limits of his authority.
On the principle of estoppels, the principal may be compelled by unauthorised contracts and actions where they are beyond the limits of the agent's ostensible authority, however he is not bound by some unauthorised act or agreement with respect to parties that have warning that the real authority is being exceeded. 
An agent's authority refers to his ability to bind the principal. It applies to "the sum of the actions agreed upon by the principal and the agent to be performed on behalf of the principal." As seen in the case of Nand Lal Thanvi v. LR of Goswami Brij Bhushan , where an agent performs certain deeds, he is said to be acting beyond his jurisdiction. 
Through their legal reading, the courts do not seek to indemnify the agent for damages incurred as a result of his mistakes, but rather seek to indemnify the third party. Around the same time, the principal has the right to sue the agent and seek restitution if the agent has overstepped his authority without a very good and necessary excuse. 







SUBMITTED BY:
                                                                   SACHIN KUMAR
                                                                                                           

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