Nandita Agarwal, Symbiosis law school, Noida
INTRODUCTION
The Indian Partnership Act,1932 is governed by the Ministry Of Corporate Affairs receiving assent on 8th April,1932 which came into force on 1st October,1932. The definition of an agency under the Indian Contract Act, 1872 is given from section 182 to 238 in chapter X in an elaborative manner.
It defines the agent as a person who is been employed to act through another or to represent the person in dealing with the third party. The person on the behalf of whom the agent performs the duty is called principal.
Principles of agency: Whatsoever work a person does by himself shall also be allowed to be done through an agent with an exception, where there are the contracts involving personal services, A person who acts through an agent been duly authorised is said to do the same by himself. “
This concept has been explained in the case of Krishna vs Ganapathi. An intricate exposition of the underlying principles behind the formation of a partnership has led to the drafting of Section 6, Indian Partnership Act, 1932 that talks about the modes of knowing the existence of the Partnership, where there does not exist any sort of relationship despite the presence of the essential elements but the partners are still liable to the third party which implies agency as an extension.
