4.5 Types of Agent By Authority

business is also incorporated under the Business Registration Act 1956 (Amendment 1978).

4.4.2 A Factor

 A factor (mercantile agent) is an agent for sale who is entrusted with possession of goods belonging to the principal for sale & who sells the goods in the name of agent without disclosing the name of the principal.

4.4.3 A Commission Agent / Commission Merchant

 It is an agent appointed by a principal to sell goods (more commonly) or to buy goods (less commonly) on behalf of the principal.  The reference ‘commission’ is not to the method of remuneration, but to the function, mandate or commission with which that the agent is charged.

4.4.4 A Del Credere Agent

 Is an agent who assume a super added duty to ensure the principal is paid by the third party.  This super added duty is compensated for by the payment of a del credere commission by the principal.  The del credere agent promises to pay the principal the price of the goods of the third party defaults.

4.4.5 A Powers of attorney

 Powers of attorney are legal instruments under which principals (donors) confer authority on agents (attorneys or donees) to perform certain acts for the principal.  Unlike most other agency relationships, powers of attorney are governed by statute viz the Powers of Attorney Act 1949.  When a person gives another a power of attorney, it means that the person authorizes another to act on his or her behalf.

4.5 TYPES OF AGENT BY AUTHORITY

 An agent’s acts are binding on the principal if they are done within the agent’s authority. If an agent does an act which exceeds that authority given, the principal is not bound unless he adopts and ratifies the unauthorized act.  An agent’s authority may be actual or apparent.