Principal In Contract Law
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How to fill out Ratification By Principal Of Agent's Execution Of Contract?
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FAQ
Offer and acceptance, consideration, intention to create legal relations, capacity, and legality. What does "consideration" refer to in the context of a contract? Consideration refers to the exchange of value between the parties involved in a contract, such as goods, services, money, or a promise.
( ACT NO. IX OF 1872 ) An "agent" is a person employed to do any act for another or to represent another in dealings with third persons. The person for whom such act is done, or who is so represented, is called the "principal".
In commercial law, a principal is a person, legal or natural, who authorizes an agent to act to create one or more legal relationships with a third party.
The principal-agent relationship is an arrangement in which one entity legally appoints another to act on its behalf. 1 In a principal-agent relationship, the agent acts on behalf of the principal and should not have a conflict of interest in carrying out the act.
Generally, a principal provides goods or services directly to the end customer, while an agent arranges for another party to provide its goods or services to the end customer. Said another way, a principal will have control of the goods or services before they are transferred to the customer, while an agent will not.
