Introduction Agency is being discussed in contract because in an agency one person appoints another to represent him in dealings with a third person. This person who makes such an employment is called a ‘principal’ and the person so employed is his ‘agent’. This agent’s act binds the principal in the same manner as it would have been if the principal acted himself. The very nature of this authority which the agent acquires, shows that extreme confidence is reposed on him. Hence, it is a fiduciary relationship where no consideration is required1. Another striking feature of this law is that the agent is entrusted with a lot of authority. As in, his words or deeds are a representation of his principal’s deed and anything the agent does the principal becomes liable for it. In Kasturchand v. Kabulchand2 it was decided that even if agent is acting in e ....