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Critical Analysis Of Apparent Authority In Contract Of Agency

Akshita Jha, BBA. L.L.B. & Prof. Alisha Thomas, School of Law, Narsee Monjee Institute of Management Studies, Bengaluru


The kind of legal relationship where any person tells another person to share his workload by performing transactions as a representative of him is termed as contract of agency. The person who appoints any third person to take charge of his transactions is termed as principal whereas the person who takes care of transactions is termed as agent. The different types of contract of agency include contracts of Indemnity, minor, bailment, A landmark case in this context was Harshad Shah vs LIC. This case raised questions on State Bank of India’s liability under doctrine of apparent authority. This case also raised a question that whether the payment of premium to any common agent of a bank can be considered as payment to the main incharge thereby declaring that all the other liabilities ended. Through this research paper lets critically analyse this case by analysing the issues all the facts and issues and judgements pertaining to the rights of general agent’s of LIC.

Keywords: Case, Indemnity, Principal, Agent, Contract


Indian Journal of Law and Legal Research

Abbreviation: IJLLR

ISSN: 2582-8878


Accessibility: Open Access

License: Creative Commons 4.0

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​All research articles published in The Indian Journal of Law and Legal Research are fully open access. i.e. immediately freely available to read, download and share. Articles are published under the terms of a Creative Commons license which permits use, distribution and reproduction in any medium, provided the original work is properly cited.


The opinions expressed in this publication are those of the authors. They do not purport to reflect the opinions or views of the IJLLR or its members. The designations employed in this publication and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the IJLLR.

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