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Types of Agents

There are three main types of agents classified by law: 1) Universal agents can perform most tasks for the principal through a power of attorney document. 2) General agents have broader powers than special agents but narrower than universal agents, allowing them to perform normal business tasks. 3) Special agents have narrowly defined powers to perform a specific task or transaction outside an agent's normal business, like a real estate agent selling furniture instead of property.

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191 views

Types of Agents

There are three main types of agents classified by law: 1) Universal agents can perform most tasks for the principal through a power of attorney document. 2) General agents have broader powers than special agents but narrower than universal agents, allowing them to perform normal business tasks. 3) Special agents have narrowly defined powers to perform a specific task or transaction outside an agent's normal business, like a real estate agent selling furniture instead of property.

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TYPES OF AGENTS

There are three kinds of agent which are classified by the law, the
first is the universal agent. A universal agent can do most things
for the principal in the principle agent relationship. The universal
agent may be appointed by power of attorney. The power of
attorney is the deed signed by the principle and witnessed by the
principle. The donor of the power gives the the agent or the
attorney the power or the authority to act on behalf of the
principle. For example, the principle may be travelling or living
overseas or maybe in hospital or have limited mobility. The power
of attorney may be general or it may be limited to a particular
area, a particular purpose such as the sale of a particular property
or a period of time such as one year or until someone returns from
overseas. Appointing an attorney can give peace of mind for
spouses or family members as they give each other power of
attorney in case of accident or absence. The power of attorney can
be stopped like any other agency appointment.

The other types of an agency type relationship include the general


agent which has less power than universal agent. The general
agent can make contracts and do things for the principle, they may
do things which are normal in the ordinary business of the
principle. For example, the agent may be employed to manage all
the principles shops or maybe employed as a travelling
representative or may be employed to do an act which is within the
normal scope of the agencies own business. The final type of agent
is a special agent which is limited and has even more narrowly
defined powers than universal and the general agent. The special
agent is appointed for a specific purpose or to do something which
is not within the course of the agents than usual business. For
example, a real estate agent may be appointed a special agent not
to sell a house but to sell furniture in the house, because selling
furniture is outside the ordinary business of real estate agent.
Many occupations including accountants and travel agents fit in
this model.

Meaning and Definition of Agency 

        Agency is the Legal relationship between an Agent and Principal.


In a contract of Agency, a person appoints another person to act on his
behalf with a third party. The person who appoints another person is
called 'Principal' and the person, who is appointed is called 'Agent'

       For example, 'A' appoints 'B' to buy 50 bags of Wheat on his behalf,
Here 'A' is Principal and 'B' is Agent. The relation between 'A' and 'B' is
called Agency.
Agent : 
  
            An “agent” is a person employed to do any act for another or to
represent another in dealing with third persons. 

  Principal :

           The person for whom such act is done, or who is so represented,
is called the “principal”. 

Kinds of Agents

     On the point of view of the extent of their authority and the nature of
the work performed by them  agents may be Classified under the
following heads : -

1)Universal Agent :

                  A Universal agent is one who is authorised to do all the acts


which the Principal can lawfully do and can delegate.

2) Special Agent:

                  A Special Agent is one who is employed to do some


particular act or represent his Principal in some particular transactions.

for example,  An agent employed to sell a Bike. If the special agent does
anything outside his authority, the principal is not bound by it and third
parties are not entitled to assume that the agent has unlimited powers.

3) General Agent:

                 A General Agent is one was employed to do all acts


connected with particular business or employment.

For example, A manager of a firm. He can bind the principal by doing


anything which Falls within the ordinary scope of that business. Whether
he is actually authorised for any particular act or not, is immaterial
provided that third party acts bona fide.

4) Broker :

               He is one who is employed to make contracts for the purchase


and sale of goods. He is not entrusted with the possession of goods. He
simply act as a connecting link and bring it to parties together to bargain
and if the circumstances materialise he becomes entitled to his
commission called brokerage. He makes a contract in the name of his
Principal. Thus, a broker is an agent primarily employed to negotiable a
contract between two parties where he is a broker for sale he has no
position of the goods to be sold.

5) Factor :

               A factor is a mercantile agent to home goods are entrusted for


sale. He enjoys Wide discretionary powers in relation to the sale of
goods. A Factor is an agent who is entrusted with the possession and
contract of the goods to be said by him for his Principal.

           He has possession of the goods, authority to sell them in his own
name and a general discretion as to this sale. He may sale on the usual
term of credit may receive the price and give a good discharge to the
buyer.

6) Commission Agent:

          Commission Agent is a mercantile Agent who buys or sells goods


for his Principal on the best possible terms in his own name and who
receives Commission for his labours. He may have possession of course
or not.
7) Auctioneers : 
             An auctioneer is an agent to sell property at a public auction. He
is primary an agent for the seller, but upon the property being knocked
down he becomes also the agent of the buyer. He is mercantile agent
within the meaning of Section 2(9) of the Sale of goods Act.   

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