Q.5 Describes the Classification of agents in detail
CLASSIFICATION OF AGENTS IN DETAIL
ON THE BASIS OF EXTENT OF AUTHORITY
(a) GENERAL AGENT
A general agent is one who has authority to do all acts in the ordinary course of trade or profession. The authority of a general agent is continuous unless it is terminated.
(b) SPECIAL AGENT
A special agent is one who has authority to do a particular act in a particular transaction. The authority of a special agent is limited to that particular act oniy and his authority comes to an end when that act for which authority was given is performed,
(c) UNIVERSAL AGENT
A universal agent is one who has authority to do all acts, which the principal can lawfully • . do, and delegate. He has an unlimited authority to bind the principal.
ON THE BASIS OF MATURE OF WORK
A broker is one who negotiates and makes contracts between the principal and the third party. He is not entrusted with the possession of goods and hence he has no lien on the goods.
A factor is one who is entrusted with the possession of goods and who has the authority to buy, sell or otherwise deal with the goods or to raise money on their security. He has a general lien on the goods.
An auctioneer is one who is entrusted with the possession of goods for sale at a public auction. He has only a particular lien on the goods for his charges.
(d) COMMISSION AGENT
The terms ‘commission agent’ is a general term, which is used in practice even for a factor or broker,
(e) DEL-CREDERE AGENT
A del-credere agent is one who gives guarantee to his principal to the effect that the third person with whom he enters into contract shall perform his obligation. He gives such guarantee for an extra remuneration, which is called the Del-credere Commission. For example, an agent who also undertakes the risk of bad debts due to the insolvency of customers to whom the goods were sold on credit will be called the dej-credere agent.
Banker acts as an agent of the customer when he collects cheques or draft or bills or buys or sells securities on behalf of his customers. He has a general lien in respect of the genera! balance of account.