Which among the below is essential for a valid contract of agency ?
The principal should have capacity to contract
Section 183 of the Indian Contract Act, 1872 lays down that any person who is of the age of majority and of sound mind may employ an agent. Thus the principal must be competent to contract, because the acts of the agent bind the principal as if done by him personally.
The agent, on the other hand, need not be competent (Section 184) — even a minor can act as an agent, though he is not personally liable to the principal. So the statement requiring the agent's competence instead of the principal's is wrong, and the statement that the agent need not have capacity, while true, is not an essential of the contract.
Under Section 185, no consideration is necessary to create an agency, so consideration is not essential either.
Hence, the essential requirement is that the principal should have capacity to contract.
Similar Questions
In bank guarantee, the number of parties involved in the agreement are ..................... .
Unless there is .................., there can be no contract.
Which one of the following is not an essential element of a valid contract as per section 10 of Indian Contract Act ?
The finder of goods has a right of .................... over the goods for his expenses.
Which of the following is not an example of implied consent for discharge of contract ?
Read Assertion (A) and Reason (R) and with the help to codes given below, point out the correct explanation :
Assertion (A) :
An acceptance is to a proposal what a lighted match is to a train of gunpowder.
Reason (R) :
Acceptance converts the offer into a promise and then it is late to remove.
Breach of contract can result in for :
A supplies the wife and children of B, a lunatic, with necessaries suitable to the style of their living. Whether A can claim the reimbursed from B’s property under which section of certain relations resembling those created by contract ?
The right of the power to redeem back the goods pledged continued till :
A frustrated contract is :
Important Questions from Indian contract acts, 1872
Which is the term used for a contract where both the parties to the contract have fulfilled their obligations under the contract?
As per Section 73 of the Indian Contract Act, 1872, in estimating the loss or damage arising from a breach of contract, what must be taken into account?
As per the Indian Contract Act, 1872, the revocation of a continuing guarantee by the death of a surety operates:
In bank guarantee, the number of parties involved in the agreement are ..................... .
Unless there is .................., there can be no contract.
