Classification of Agent

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Classification of Agent

Published by: Anu Poudeli

Published date: 04 Aug 2023

Classification of Agent

The term "agent" refers to a person or entity who is permitted to act on behalf of another, known as the principal, to execute certain tasks or make decisions. The relationship between the agent and the principal is controlled by agency law, which is a subset of contract law.

Agents are grouped into numerous categories based on their connection with the principal, the scope of their authority, and the nature of their representation. Here are some common legal classifications for agents:

1. Universal Agent : A universal agent is permitted to act on behalf of the principle in all issues and to make any choice that the principal could make themself. A universal agent's power is extensive and covers practically all facets of the principal's authority.

2. General Agent : A general agent is someone who is authorized to represent the principal in a specified area or for a specific sort of transaction. Unlike a universal agent, the authority of a general agent is limited to a certain set of actions.

3. Special Agent : A special agent, also known as a specialized agent, is someone who is assigned to undertake a specific assignment or perform a specific obligation on behalf of the principal. Their authority is limited to that specific task, and they are not permitted to act outside the area of their mission.

4.Agency Coupled with an Interest: This is a unique sort of agency in which the agent is given an interest in the agency's subject matter. The principal's authority over the agent is irrevocable until the agent agrees to terminate it. This form of agency frequently occurs when the agent has a financial or security stake in the agency's property or subject matter.

5.Sub-agent: A sub-agent is someone who is hired by an agent to do some or all of the agency's work. The actions of the sub-agent bind the principal just as if the principal had authorized the actions personally.

6.Co-agent: Two or more agents are designated to operate jointly on behalf of the principal in this circumstance. They must generally act in unison and accept joint responsibility for their activities.

7. Gratuitous Agent : A gratuitous agent is someone who performs on behalf of the principal without obtaining any money or advantage in exchange. Even though the agent is not paid, they still have a duty of care to the principal.

8.Independent Contractor: For certain purposes, such as doing activities on behalf of the principal, an independent contractor may be deemed an agent. However, unlike a conventional agent, the independent contractor typically operates with greater autonomy and is not as closely supervised by the principal.

Understanding the classification of agents is critical because it helps to establish the amount of their authority, the breadth of their responsibilities, and the liabilities they may face in particular scenarios. However, the particular laws and regulations governing agency law might differ from one jurisdiction to the next, so it's always a good idea to speak with local legal professionals or refer to the relevant legislation and case law.