B.A. LL.B. (Hons.)
A project in the subject of Contract-II on the topic titled as ‘Agency of Necessity’
Prof. Owais Hasan Khan
The text declared in the project is the outcome of my own efforts and no part of this report has been copied in any unauthorized manner and no part in it has been incorporated without due acknowledgment.
Institute of Law
This is to certify that Ms. Dhwani Tanwar Roll no.12Bal054 has done project on the topic “Agency of Necessity” for the subject Contract Law-II as a part of their Course. This is her original work.
Mr. Owais Hasan Khan
Asst. Prof. of Law
Institute of Law
I would like to express my gratitude towards my mentor Prof. Owais Hasan Khan for his invaluable advice, guidance and patience over this project.
I would also like to acknowledge Institute of Law, Nirma University for providing me the opportunity to prepare a report on an issue which needs urgent attention for the welfare of our society.
TABLE OF CONTENTS
Review of Literature
Coverage and Scope
When agency of necessity gets
Agency of necessity in
Conclusion and Recommendation
AGENCY OF NECESSITY
Section 182 defines the terms “Agent” and “Principal” as follows: An “agent” is a person employed to do any act for another or to represent another in dealings with third person. The person for whom such act is done, or who is so represented, is called the “principal”.
In an agency one person (principal) employs another person (agent) to represent him or to act on his behalf, in dealings with a third person. The act of the agent binds the principal in the same manner in which he would be bound if he does that act himself.
An agency may be created in any of the following ways:
1. Agency by express authority
2. Agency by implied authority
· Agency by estoppels;
· Agency by holding out;
· Agency by cohabitation;
· Agency by necessity;
3. Agency by statute
4. Agency by ratification.
Implied agency arises from the conduct, situation or relationship of parties. It may be inferred from the circumstances of the case; and things spoken or written, or the ordinary course of dealing, may be accounted circumstances of the case.
According to Halsbury, “Agency of necessity arises whenever a duty is imposed upon a person to act on behalf of another apart from contract, and in circumstances of emergency, in order to prevent irreparable injury. It may also arise where a person carries out the legal or moral duties of another in the absence of default of that other, or acts in his interest to preserve his property from destruction.”
In certain situations, the law allows the agent to act for the principal without the knowledge and consent of the principal. These are known as agencies of necessity. An agency of necessity is another way in which an agency can arise by operation of law. Its origins can be found in mercantile law, and in shipping law in particular. It may arise where a person is faced with an emergency in which the property or interests of another person are in imminent jeopardy and, in order to preserve that property or those interests, it becomes necessary to act for that person without his authority. An agency of necessity probably only applies where there is already some existing contractual relationship between the parties, as the law is highly unlikely to allow a person to be bound by the act of a complete stranger.
An agent who seeks to bind a principal on...
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