The term agent applies to anyone who by authority performs an act for another, and includes a great many classes of persons to whom distinctive names are given.

 

Kinds of Agents: -  

    The term agent applies to anyone who by authority performs an act for another, and includes a great many classes of persons to whom distinctive names are given. There may be various types of agents whose powers and duties are settled by usage and custom of trade recognized by the courts of law. The important one are classified as under: 

1. Express or Implied Agents:- 

    An express agent is one who is appointed verbally or by writing. An implied agent is one whose appointment is to be inferred from the conduct of the parties. 

2. General, Special or Universal Agents:- 

    A general agent is one who is employed to transact generally all the business of the principal in regard to which he is employed. A special agent has only authority to do some particular act or represent his principal in some particular transaction. A universal agent is one who is authorized to transact all the business of his principal of every kind and to do all the acts which the principal can lawfully do and can delegate. 

3. Agent or Sub-agent:- 

    An agent derives his authority directly from the principal. A sub-agent derives his authority from the agent who has been appointed to do the act. One broad classification of agents is mercantile or commercial agents and non-mercantile or non-commercial agents. 

4. Mercantile Agents:- 

The following are some of the important mercantile agents.

Factor :- 

    A factor is a mercantile agent to whom possession of goods is given for sale. Generally speaking, he is a person to whom goods are consigned for sale by a merchant residing abroad, or at a distance from the point of sale. He usually sells the goods in his own name. He has ostensible authority to dispose of the goods or to do such things as are usual in the conduct of his business. He cannot barter or pledge the goods. He has a general lien for the balance of account as between himself and the principal. 

Auctioneer :-

    An auctioneer is an agent who is appointed to sell goods at a public auction for remuneration. He may or may not be entrusted with the possession or control of the goods which he sells. He may be agent both for the seller and buyer. The auctioneer can sue for the purchase price in his own name.  An auctioneer has implied authority to sell the goods without any restriction. Hence a sale by him in violation of the instruction is binding on the owner. If the owner directs the auctioneer not to sell below a reserve price and the auctioneer sells it below that price, the sale is even then binding on the owner except in cases where the buyer knew that there was limitation on the auctioneer’s authority. 

c) Broker:- 

    A broker is a mercantile agent who is employed to make contracts for the purchase and sale of goods for a commission called brokerage. A broker unlike a factor is not entrusted with the possession of the goods. Even the documents of title are not made over to him. His business is to find purchasers for those who wish to sell, and sellers for those who wish to buy. His duty is to bring parties together to bargain for them in various matters. He makes contracts in the name of his principal and not in his own name. He is a mere negotiator or in senses a middleman.

d) Commission Agent:- 

    A commission agent is a mercantile agent who in consideration of a certain commission engages to purchase or sell goods for his principal. He buys and sells goods in the market on the best terms and in his own name. His only interest in the transaction is his commission. All profits and losses accrue to the principal. A commission agent may or may not be in actual possession of the goods. His position is very similar to that of the broker. 

e) Del Credere Agent:- 

    A Del credere agent is an agent who is in consideration of a extra remuneration guarantees to his principal the performance of the contract by the other party. This Del Credere commission is a higher reward than is usually given in the form of commission. He occupies the position of a guarantor as well as of an agent. But his liability is secondary and arises only on the insolvency or failure of the other party. A Del Credere agent is appointed generally when the principal deals with persons about whom he knows nothing. A Del Credere agent is the person who is not dropped out after establishing the link between principal and third person. 

f) Banker:- 

    The relation between a banker and a customer is either that of debtor and creditor or of an agent and principal. When the banker advances money to this customer as a loan, banker is the creditor and customer the debtor. But the banker acts as agent of his customer when he buys or sells securities, collects cheques, dividends, bills, etc. on behalf of his customer. 

g) General Agent and Particular Agent:- 

    A general agent is one who represents the principal in all matters concerning a particular business. A particular agent is one who is appointed for a specific purpose e.g. to sell a particular article. Factors and commission agents are usually general agents. When general agents are appointed it is usual to execute a general power of attorney by which the agent is given authority to do certain things. A particular agent may be appointed by executing a special power of attorney by which the agent is authorized to do a specific thing. A power of attorney must be written and stamped. A man dealing with a particular agent is bound to find out the limits of the authority of the act and act accordingly. 

Non-Mercantile Agents:- 

    Non-mercantile agents include counsel, solicitor, guardian, promoters, wife, receiver, insurance agent etc.