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Contracts II Synopsis

A power of attorney allows one person to delegate authority and act on behalf of another person. An agent acts under the authority of a principal through a power of attorney. The document discusses the key aspects of power of attorney and agency under Indian law. It defines key terms, outlines research questions around the nature and validity of power of attorney, and reviews literature on an agent's authority, revocation of agency, and duties of the agent. The literature review covers judicial interpretations and examinations of concepts such as the principal-agent relationship, rights and duties, and termination of agency.

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Sonali Dalai
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147 views

Contracts II Synopsis

A power of attorney allows one person to delegate authority and act on behalf of another person. An agent acts under the authority of a principal through a power of attorney. The document discusses the key aspects of power of attorney and agency under Indian law. It defines key terms, outlines research questions around the nature and validity of power of attorney, and reviews literature on an agent's authority, revocation of agency, and duties of the agent. The literature review covers judicial interpretations and examinations of concepts such as the principal-agent relationship, rights and duties, and termination of agency.

Uploaded by

Sonali Dalai
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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LAW OF CONTRACTS II - SYNOPSIS

POWER OF ATTORNEY & AGENCY


Sonali Priyadarsani
BA0190048

INTRODUCTION
A power of attorney is a delegation of authority in writing by which one person is empowered
to do an act in the name of the other. The person who acts on behalf of another person (the
principal) by his authority, express or implied, is called an agent and the relation between him
and his principal is called agency. A power of attorney holder is nothing but an agent as
defined in S. 182 of the Indian Contract Act, 1872 (Contract Act). The authority of an agent
is his power to affect his principal position by doing acts on his behalf. Actual authority is the
legal relationship between the principal and agent created by a consensual agreement to
which they alone are parties.

RESEARCH QUESTIONS
1. How to ascertain whether the Power of Attorney is general or special in nature?
2. What are the requirements of a valid Power of Attorney & the duties of the power
holder, i.e., Power of Agency?
3. How to decide whether the authority of an agency can be revoked or not?
4. Whether Contract of Agency is an exception to the doctrine of Privity of Contract?

LITERATURE REVIEW
1. Agent’s Authority- Judicial Interpretation, Manupatra Articles,
<http://docs.manupatra.in/newsline/articles/Upload/FA398636-A18A-4B4A-AD0B-
67DF42E894B4.pdf> accessed on 27 September, 2020.
The article deals with the concept of the rights and duties of an Agent appointed under
the provision of Power of Attorney. Further, it discusses the authority of an Agent and
the scope of exceeding of such an authority.

2. J. O. Fabunmi, ‘The Scope of Agents Authority & Power’ (1980) 22(3) Journal of the
Indian Law Institute 414, 430. <https://www.jstor.org/stable/pdf/43950704.pdf?
casa_token=P6WtycDDiggAAAAA:zUUs7yatk_RNkWsjxoreM5w74_hhWZBqPlzP
3FYfNTLVm3UcL9m1m47C2wR3INS6IX5d4cALhnD-
QeTyuuK5gM8TC5CpJDujU3S_JOv0F5ZTkz9F> accessed on 27 September, 2020.
The article deals with the concepts relating to the power of agency, revocation,
personal responsibility of an agents, termination of agency and the duties of an agent.
Further, it examines the general rule of agency.

1
3. Sanah Sethi, ‘Contract of Agency’, Lawordo Papers,
<https://www.lawordo.com/contract-of-agency-project/> accessed on 27 September,
2020.
This article explains the basic essentialities of the contract of power of attorney in
relation to the contract of agency. It gives an insight into the basics of a contract of
agency, as in, who can be an agent, how can one form a contract of agency &
ratification.

4. R. K. Bangia, Contract II, 476-481, Allahabad Law Agency 2018).


This books discusses the laws prevailing in India with regard to the Power of Attorney
and Agency. Also, it discusses the principal-agent relationship, its scope, rights &
duties associated with it.

5. Suraj Lamp Industries v State of Haryana, (2012) 1 SCC 656.


In this case, it was held that the power of attorney is creation of an agency whereby
the grantor authorizes the grantee to do the acts specified therein, on behalf of grantor,
which when executed will be binding on the grantor as if done by him

6. State of Bihar v Dukhulal Das, AIR 1962 Pat 140.

A simple test can be conducted to establish if a binding contract of agency is in place,


i.e. certain criteria have been set by the Patna High Court, which if needed could be
looked upon to check for the existence of an agency; 
 If the “agent” is willing to act on behalf of the principal, i.e. if he purposes to
enter into transactions on behalf of its principal.
 If he has the authority to create, modify or terminate contractual relations
between the principal and third parties.

CHAPTERISATION

1. Introduction
2. The Law on Power of Attorney
3. Kinds of Power of Attorney
3.1 General Power of Attorney
3.2 Special Power of Attorney
3.3 Durable Power of Attorney
4. Requirements of a valid power of attorney
4.1 Revocation of Agency
4.2 Termination of Agency
5. Conclusion

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