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Question
Where the agent has himself an interest in the property which forms the subject-matter of the agency, the agency cannot, in the absence of an express contract, be terminated to the prejudice of such interest. This is known as _______________.
Where the agent has himself an interest in the property which forms the subject-matter of the agency, the agency cannot, in the absence of an express contract, be terminated to the prejudice of such interest. This is known as _______________.
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Solution
The correct option is A Agency coupled with interest
This concept is known as Agency coupled with interest. It is enshrined under Section 202 of the Indian Contracts Act. Agency by ratification means when an agent does a work that is not under his authority but the Principal then ratifies the work by either implied or expressed conduct then it is said to be an agency by ratification. Agency by emergency or necessity - where there is an emergency and it is impossible to take the authority of the Principal. And the act is such that if not done would necessarily cause prejudice to the interest of the Principal, or any other interested Party.
This concept is known as Agency coupled with interest. It is enshrined under Section 202 of the Indian Contracts Act.
Agency by ratification means when an agent does a work that is not under his authority but the Principal then ratifies the work by either implied or expressed conduct then it is said to be an agency by ratification.
Agency by emergency or necessity - where there is an emergency and it is impossible to take the authority of the Principal. And the act is such that if not done would necessarily cause prejudice to the interest of the Principal, or any other interested Party.
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