The question (15 marks)
Explain the ways in which an agency may be created, and the extent of an agent's authority to bind his principal. What are the requisites of a valid ratification? (15 marks)
MU Module IV, agency - creation, authority, ratification and termination; chapter on agency.
Plan your answer on paper before you look at the authorities — issue first, then the rule, then apply it to these facts.
It tests Unit 4 · Indemnity, Guarantee, Bailment and Agency of Contract – II.
Authorities you will need
- Lloyd v. Grace, Smith & Co.
- State Bank of India v. Shyama Devi
- Sections 226, 227 and 228 of the Indian Contract Act 1872, on the effect of an agent's acts and of excess of authority
How an answer is marked
A full-marks answer names the issue in one line, states the rule with its section, cites the authority, applies it to these facts and concludes — in that order. The app's model answer for this question is written in exactly that shape, with a checklist to mark your own attempt against.