What is the difference between an agent and a third party?
A contract is formed directly between the principal and the third party, and both the principal and the third party may sue and be sued on it. The agent is not party to the contract, and may not sue or be sued on it, unless contrary intention appears.
What is the relationship between agents and people?
1 In a principal-agent relationship, the agent acts on behalf of the principal and should not have a conflict of interest in carrying out the act. The relationship between the principal and the agent is called the "agency," and the law of agency establishes guidelines for such a relationship.
What are the relation of principal with third parties?
The principal is party to and is bound by contracts made by his agent with a third party, within the scope of his express or implied authority. The third party can enforce the contract directly against the principal and vice versa.
Can a third party Sue an agent?
This is because the agent is not a party to the contract. If in a contract with the third party, it is expressly stated that the agent shall be held personally liable to the third party independent of his principal, then the third party can sue the agent under the terms of the contract.
What is the relation of partners to third parties?
Relation of partners to third parties is subject to various rules and regulations. Like a partner shares the profit in a business, he also holds a number of liabilities. One of them is being an agent to all the others who co-own a business. Section 18 of the Indian Partnership Act specifies the role of a partner as an agent.
What are the rights of a third party in contract law?
According to Section 231 of Indian Contract Act, 1872, a third person has a right to enforce a contract against both the agent as well as the principal. The third party can proceed with a suit against the Principal for any loss suffered as a result of the principal’s failure to perform the duty.