Introduction
The relationship between a principal and an agent forms the basis of agency law, governed under Chapter X (Sections 182–238) of the Indian Contract Act, 1872. An agent acts on behalf of the principal, creating a legal relationship with third parties. The law also addresses who can be an agent and whether a minor can legally act in such a capacity.
Main Body
Definition of Agent and Principal (Section 182)
- Agent: A person employed to do any act for another or to represent another in dealings with third parties.
- Principal: The person for whom the agent acts or represents.
Example: A authorizes B to buy goods on his behalf. A is the principal, and B is the agent.
Characteristics of a Valid Agency Relationship
- Mutual consent
- Principal must be competent to contract
- Agent may or may not be competent (discussed below)
- Legal intention to create agency relationship
- Can be created expressly or impliedly
Can a Minor be an Agent?
As per Section 184 of the Indian Contract Act:
“Any person who is of the age of majority according to the law to which he is subject, and who is of sound mind, may employ an agent.”
It implies that the principal must be a competent person. However, there is no such restriction on the agent. Hence, a minor can act as an agent but:
- Cannot be held liable to the principal due to incapacity to contract
- Can perform duties that do not involve contractual obligations
- Principal is liable for the acts of the minor agent, done within authority
Legal Position
Though a minor cannot be held accountable for contractual obligations personally, their acts bind the principal if performed under authority.
Example: If a minor agent purchases goods for the principal within authorized limits, the principal is liable to the seller for payment.
Duties of an Agent
- Follow instructions of the principal
- Act with due care and diligence
- Maintain accounts and confidentiality
Rights of an Agent
- Right to remuneration
- Right to lien over principal’s property
- Right to indemnity for lawful acts done in good faith
Termination of Agency
An agency relationship may be terminated by:
- Revocation by the principal
- Renunciation by the agent
- Death, insanity, or insolvency of either party
- Completion of the business or expiry of time
Conclusion
An agent is an important legal representative of a principal in business and contractual dealings. While a minor can act as an agent, they are not personally liable for the consequences. This distinction ensures the flexibility of agency while protecting the interests of minors under contract law.