Q. What is a test of the Agency?

Ans. In an agency, there must be a contract of employment to bring the principle into legal relations with a third party.

Q. Can a minor become agent?

Ans. Yes, minors may become agents.

Q.What is ‘delegatus non potestdelegare’?

Ans. This maxim states that no delegated power can be further delegated.

Q. What is the difference between Sub-Agent & Substituted Agent?

Ans. A person who is appointed by and acting under the control of the original agent in the business of the agency is called a sub-agent.

If an agent has an express or implied authority of his principal to name a person to act for him and the agent has accordingly named a person. Such a person is called substitute agent. In the matter of substituted agent direct privity of contract is established between the principal and substituted agent. The agent is not for the liable work done by the substituted agent.

Q.  What is ratification?

Ans. The doctrine of ratification applies when a person has done an act on behalf of another without his knowledge or consent. This is a kind of affirmation of unauthorized acts. This is explained in section 196 of the Contract Act.

Q. Describe the doctrine of Relation back?

Ans. Section 196 of the Contract Act declares that if an authorized act is ratified by the person on whose behalf it was done.

Q. What is the relation between revocation & renunciation?

Ans. The relationship between principal and agent may terminate by Revocation and Renunciation. In the process of Revocation, the principal may revoke the agent’s authority.

In the process of Renunciation. An agent may renounce the business of the agency.

Q. What are the liabilities of the Principal for the act of Agent?

Ans. An agent can neither responsible for the act done by him on behalf of principal. He can neither sue nor be sued on contracts made by him on the behalf of principal’

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