Saturday, 4 December 2021

Equipments or skills of an advocate

Vande Matram! In this article, I am discussing the equipments of an advocate or in simple words skills or qualities of an advocate. All over the world, these qualities are making a lawyer a successful advocate. Let’s begin.

Introduction

Practicing as an advocate requires you to demonstrate several core skills and attributes. A great advocate has the potential to have a dramatic and positive impact on the life of a client.

It’s not an easy job, and not everyone is cut out for it. Below are the equipments or qualities that are common to the best lawyers:

1) Honesty and integrity in character:

An advocate should be honest and must be a man of integrity and character. Honesty is the quality of freedom from deceit, cheating, stealing, and telling lies. Integrity is the quality of completeness and uprightness character. A character consisting of both mental and moral qualities makes one person different from others.

2) Independence and dignity:

An advocate should maintain his dignity Independence and integrity. An advocate should discharge his duties fearlessly and faithfully. He should fulfill his duties with the eternal and immutable interests of truth and justice.

3) Passion for the Job:

As a starting point, successful lawyers almost always have a true passion for their job. There is a wide body of scientific evidence that demonstrates the importance of passion for your work. In other words, people who are passionate about what they are doing are happier, more fulfilled, and perform better.

4) Compassion and Emotional balance:

Compassion is an emotional response whereby one perceives another’s problem and authentically, genuinely wants to help resolve the problem. Compassion is the foundation for good people skills. Without compassion, a lawyer cannot put himself in his client’s shoes or fully understand the issues his client faces. Without compassion for his/her clients, a lawyer will never reach his/her true professional potential. A lawyer who is committed to represent and helping his/her clients is likely to find meaning and success in his/her professional life. Exact thinking and exact expression are needed for a successful advocate.

5) Good communication or negotiation skills:

On a fundamental level, advocates are communicators. They communicate with their clients, they communicate with other parties to the case, and they communicate with the court. Beyond that, lawyers communicate in a wide range of different ways. Hence lawyers or advocates must posse excellent communication skills, both oral as well as written. To be a good advocate it matters only how you deal with the people and interact with them. Lawyers need to know how to network with potential clients and how to demonstrate their professional capabilities in consultations with prospective clients.

6) Listening skills:

When you truly open up your ears, you will probably recognize that people are giving you even more information than you thought. Listening to your clients, listening to witnesses, listening to your opposing counsel, and listening to the court can be the difference between winning and losing a case. To be a great lawyer or advocate one must have and possess the quality and skill to listen to each and every individual who tends to speak before him, develop the ability to listen to others patiently and carefully. In practice, this skill helps the lawyer and their practice in every possible manner to cross-examine the witness or to the finding of the opposite counsel and facilitate an effective rebuttal. Although strong listening is a part of overall communication skills, it’s important to highlight listening as its own professional equipment. Effective communication is a two-way street. The best way to create unique solutions is to approach each situation with compassionate listening, which enables you to really understand the issues and what the client and the adversary need.

7) Knowledge of the Law and legal learning:

Learning of law does not stop with the acquisition of a law degree from a University. To acquire professional knowledge he has to continue the learning process.  To learn law an advocate should study law, and not merely read it. For every different matter, a lawyer has to go through the laws, acts, and reported judgments related to similar matters. And thus learning new laws and case laws makes the process of gaining knowledge of law continuous.

8) Attention to detail and good writing skills for presentation of case:

The legal profession is basically based on communication skills. Hence a successful lawyer should give his attention to details of writing and drafting the legal documents such as memos, notices, pleadings, etc. A single word out of place can change the entire meaning of a clause or pleading. To be a great lawyer, tremendous writing and drafting skills are needed which are useful and beneficial while preparing the case arguments, briefs, and other legal documents. An advocate should represent meaningfully his case by arranging facts in proper sequence and chronological order without confusion. Further, he should present a record of a citation for his law points presented. He should not give scope for the lapses of accuracy and misstatement for facts.  An advocate should not conceal adverse points. But present the special circumstances of them.

9) Using proper legal phraseology:

Every science has its own terminology. In a similar way law also has its phraseology peculiar to itself. Every phrase of law has a particularly special meaning it carries. No other word is suitable to be used in its place. To express some feelings the lawyer should use an appropriate word to convey such meaning. The elegance and dignity of arguments in court can be exposed through the correct use of the language.

10) Creativity in problem-solving and out of box thinking:

The top or excellent lawyers are not only logical and analytical, but they display a great deal of creativity in their problem-solving. The best solution is not always the most obvious and it is often necessary to think outside the box to overcome its challenges. The law is not purely a science. There is an art to effective legal practice. Remember, each client that an advocate deals with will have their own unique set of goals, objectives, and concerns. In some cases, outside-the-box thinking can help craft a solution that the client may never even realize was possible. Successful lawyers know how to tailor their creativity to suit every situation. All cases should be approached with an open mind.

11) Patience and perseverance:

Patience is the power of enduring trouble, suffering, and inconvenience without complaining. An advocate with patience will have the ability to wait for results, to deal with problems calmly and without haste. Perseverance is consent effort to achieve something. An advocate who is capable of doing his job, with maximum patience self-confidence and faith is honored by all. Perseverance is the nature and attitude which develops the capability to deal and perform the activities and tasks assigned productively and constructively with the numerous and variety full events which further embodies distractions. What sets successful advocates apart from ordinary lawyers is that they know how to persevere through the challenging times to get to the rewarding and meaningful moments that make it all worth it.

12) General Knowledge and memory:

An advocate should not only be the master of his faculty in law but also the contemporary knowledge of all the branches of human life. He must touch every field of human beings and he has to study all walks of life of human beings. If he is gifted with knowledge of all subjects he can claim to be an architect in the profession. Also, an advocate should be able to recall and reproduce what he knows regarding the matter i.e. he must have a good memory. In a general sense, a memory means the power of keeping the fact in the conscious mind and of being able to call it back at will. An advocate should possess tenacious memory. If he fails to do so then he will be a failure.

13) Study of Law Reports and citation of authorities:

An advocate should read the current Law Reports to keep his knowledge up to date. The Law Journal and reports published the case laws and articles on law issues are very helpful in keeping your knowledge up to date. An advocate should not only study the Law Reports he should also preserve them to refer again and again and produce in the court in support of his arguments. He should quote the applicable citations. He should always take care of citing the latest authority on a particular point. If the decision of the Supreme Court is there which support his case then he should present the decision of the Supreme Court instead of the decisions of lower courts. He should skillfully select the correct and suitable one among several decisions. The citation he is using should be written in précised manner.

14) Research and healthy skepticism:

A lawyer has to spend many hours preparing the case. They spend a lot of time conducting research, preparing documents, and interviewing a witness. Every successful advocate maintains a healthy skepticism. An advocate needs to be aware of the fact that what he is being told might not represent the full story. A common error that almost every seasoned lawyer has made at least once involves believing someone without getting proper verification. If something sounds ‘wrong’ or ‘off’, successful advocates take the time to verify the information. Being a good advocate one should have the ability to research quickly and effectively which is essential to understand his/her clients, their needs, and preparing legal strategies.

15) Comprehension and Analytical skills with Logical thinking ability:

To be a great lawyer one should have comprehension skills which means one must have the ability to comprise many topics and small details to study, so it is important to absorb the information in an organized and sensible manner. Also to become a successful lawyer, one should have the ability to look at any situation and analyze it from all the points of view. A criminal defense advocate has to look at the case from the view of the prosecutor, and vice versa. To absorb large volumes of data and be able to distill it into something manageable, you need to have analytical skills, and this goes without saying.

16) Decision making and judgment:

At times, lawyers are required to make judgments, both for themselves and for their clients. For instance, a lawyer may have to decide whether a legal claim is worth pursuing at all. A good lawyer should have the ability to draw reasonable, logical conclusions or assumptions from limited information. Anticipate and spot the possible event and happening, analyze the positive and negative areas of the case to prepare the same in such a manner that is beneficial and in the favour, and take into consideration the interest of the client. Alternatively, an advocate may be involved deep in settlement negotiations and their client may ask them for their opinion on a proposed deal. To be clear, the client is ultimately responsible for making a choice, but it’s the lawyer’s job to make sure that the client knows and understands all relevant information so that they can make an informed decision.

17) Manner in court:

As the duties of the practicing lawyer state, an advocate should maintain calmness he should be respectable to the court. Lawyers should never interrupt the Judge when he speaks but should wait for the judge to complete his statement. When asked by the judge, the lawyer should politely give his answers. Advocates should argue logically but not confront or quarrel when permitted by the Judge.

 

So these are the equipments and skills of an advocate to be successful in his profession. To know the references and to read more articles related to Professional ethics and professional accounting system please visit this page " Legal Profession: Professional Ethics and Professional accounting system.

Thanks for reading till the end. Please share this with all legal professionals.

Friday, 3 December 2021

Professional ethics of a lawyer:

Vande Matram! In this article, a list of various duties of an advocate is given. All over the world same duties, an advocate has to fulfill. But the list is in the perspective of India according to the Advocates' Act, 1961 and Bar Council of India Rules. Let's begin.

Introduction:

In the legal profession, a lawyer must obey professional codes for fair dealing with the client and upholding self-possession. A lawyer is having duties towards his profession, the society, the court, the client, the opponent, his colleague, nation, and himself.

As per section 7(1)(b) of the Advocates’ Act 1961, the council has to lay down standards of professional conduct and etiquette for advocates. And section 49(1)(c) of the Advocates’ Act 1961 allows the bar council of India to make rules to suggest the standard of professional conduct to be observed by advocates. Bar Council of India has framed the rules under part VI of chapter II dealing with the standard of professional conduct of lawyers. This chapter state 39 rules or duties of the lawyer against the court, client, opponent, etc. These rules or duties of the lawyer, in brief, are as follows:

Lawyer’s duties towards the court:

a) to maintain a respectful attitude and dignity towards courts.

b) not to impact the decision of a court by any unlawful or inappropriate means.

c) use his best effort to avoid his client from doing unfair practices.

d) to appear in the court in the prescribed dress and a presentable manner.

e) to wear bands or gowns in courts only or ceremonial occasions and not in public places.

f) not to plead in any matter in which he is himself interested.

g) if he is a member of the Executive Committee of an organization or corporation then he cannot appear in or before any court or any other authority or represent the case of that organization.

Lawyer’s duties towards client:

a) once accepted then cannot withdraw from actions or engagements, without appropriate cause.

b) should not accept and appear in a case in which he has reason to believe that he will be a witness.

c) to make full disclosure against his connection with the parties or interest before the commencement of engagements or during the process.

d) support the interests of his client by all moral means.

e) not to overpower any material or evidence, which shall prove the innocence of the accused.

f) not to reveal the communications or talk made by his client to him.

g) not to charge for his services depending on the success of the matter taken.

h) does not adjust the fee payable to him by his client against his liability to the client.

i) to keep proper accounts of received money from clients and to provide a copy of statements to clients also and in case of cancellation of proceedings, adjust the fee.

j) and cannot make payments in favour of clients or cannot lend money to him for legal proceedings.

k) if he has advised the party in a matter with the institution of suits, then he cannot appear for the opposite party for the same matter.

Lawyer’s Duties towards opponent:

a) he cannot communicate or negotiate with any party represented by an advocate except through that Advocate upon the subject matter of conflict.

b) to carry out all valid promises made to the opposite party on account of settlement.

Lawyer’s duties towards colleagues:

a) an advocate has an obligation to colleagues that he will not solicit work or advertise, either directly or indirectly. The sign-board or name-plate should be of a reasonable size, and that board will not show that he is a member on bar council or he is or has been president of bar council or he is or has been with some organization or with matters of particular specialization, etc.

b) he shall not be allowed to use his name in aid or professional service.

c) when a client can pay the fee then he will not accept a fee less than taxable under rules.

d) not enter in the appearance of any case in which there is already a memo was filed by an advocate, except with his consent or parties' consent.

Lawyer’s duties towards nation:

a) shall endeavor to make the laws suitable to the well-being of the people.

b) shall guard the liberty and freedom of the people.

c) should protect fundamental and human rights and respect the constitution of the nation.

d) should strive for social legislation to accelerate the advent of socialistic pattern of society in India by dedicating to the public service.

e) shall uphold the integrity and Unity of the nation 

f) shall educate the people to respect the law and respect for the courts and the judges.

Lawyer’s duties towards society:

a) shall establish  Legal Aid Societies to render legal assistance to really poor and deserving persons free of any charge.

b) shall help the people local bodies such as panchayats in villages to function on sound lines, so that the people may discharge their functions in an enlightened and responsible manner.

c) shall provide Legal education to the illiterate and working people by informing them of the rights and legal provisions in simple language.

d) shall compose family differences and Settle petty Disputes and controversies by amicable settlement.

e) shall educate the masses on the right lines to come out of many social ills from which people are suffering.

f) shall work with social welfare committees to promote social order in which justice, political, economic, and social will be assured to one.

Lawyer’s duties towards himself:

Advocates should maintain their high tradition of fearless independence, probity, and integrity, and lineup to the noble ideas and dedicate their lives for the vindication of the truth and justice and also for the good of the common man.

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What is the need for professional ethics in the legal profession?

Vande Matram! In this article, there is a discussion on the need for professional ethics in the legal profession. All over the world, this need is the same. So let's begin.

Introduction:

It is well known that the legal profession is developed for the good of human society. The Legal Profession plays an important role in the administration of Justice. The Lawyers are considered to be the center of the administration of justice. Lawyers are the ones who are related to the parties, they listen to the party and collect all the relevant legal materials relating to the case and argue the case in court, thus helping the Judge to arrive at the correct and fair judgment.

Justice P.N. Sapru in his book The art of Advocacy has stated that “justification for the existence to the counsel is that each side to the controversy should be in a position to present its case before an impartial tribunal in the best and most effective manner possible.”

As per International Bar Association's International Principles on Conduct for the Legal Profession, “Lawyers throughout the world are specialised professionals who place the interests of their clients above their own and strive to obtain respect for the Rule of Law. They have to combine a continuous update on legal developments with service to their clients, respect for the courts, and the legitimate aspiration to maintain a reasonable standard of living.”

Need of legal professional ethics:

The legal profession is necessarily the keystone of the arch of Government as lawyers play an important role in law reforms. If it is weakened, and allowed to be a subject of the corroding and demoralising influence of those, who are controlled by craft, greed or gain, or other unworthy motives, sooner or later the arch must fall. The future of the country depends upon the maintenance of the shrine of justice, pure and unrolled by the advocates.

Therefore, it becomes the plain and simple duty of the lawyers to use their influence in every legitimate way to help and make the Bar what it is ought to be. The members of Bar, are officers of the court and they should hold office only during good behavior. The good behavior of members of the bar should be defined and measured by ethical standards, necessary to keep the administration of justice, pure and unsullied.

The legal profession unlike other professions, which are generally taken up with the sale object of earning money is the profession of high dignity. Hence an advocate must be modest, sober, patient, prompt to do his duty without anxiety, pious without going so far as superstition, conducting himself piously in the profession, and in all the actions of his life. He is a public functionary.

The lawyer is considered a protector of justice. If he fails entire law and order fails. Therefore, a high standard of ethical conduct is expected from the advocates. An advocate should be an upright man. He must keep himself pure in character and be diligent and devoted to his profession.

According to research by Steven Vaughan and Emma Oakley, “modern-day corporate lawyers are extremely ethically apathetic, they are neither good nor bad, but are rather indifferent when it comes to the ethics of what they do and the impacts it might have on their work.” The fundamental aim of legal ethics is to uphold the honour and dignity of the legal sphere, ensuring the spirit of friendly cooperation, mutual and fair dealing of counsel with clients, and to secure lawyers’ responsibilities to society. The fundamental principles of legal ethics include diligence and dedication, professionalism, uprightness and integrity, personal development, and the impact of technology on professional ethics and the general practice of law.

If the conduct of the lawyers is codified in a good manner then it will be easy to monitor their professional conduct and implement those moral practices for the upliftment of society. Also, it will be easy to take appropriate actions on the professional conduct of an advocate influenced by an unworthy motive.

Conclusion:

The legal profession is developed for the good of society. It is the arch of Government and if is weak then the law and order of society will collapse. The fundamental aim of the legal profession is to uphold the honour and dignity of the legal sphere. For this purpose, a code of conduct is needed which will keep unworthy motives of legal personnel at the bay. Thus it is necessary to have professional ethics for the legal profession codified.


Legal professional ethics short questions and answers: 2

Vande Matram! In this article, you are going to read and note down the short question and answers related to legal professional ethics. Well all over the world the legal profession is having the same ethics. So let's begin.

Q11. A basic requirement for a profession is ___________.

Ans. adherence to a set of professional norms.

Q12. Professional ethics consists of a code of conduct for ______ of the individuals who are in that profession.

Ans. regulating the behavior.

Q13. In the legal profession, a lawyer must obey professional codes for ________.

Ans. fair dealing with the client and upholding self-possession.

Q14. Why observance of ethics of the legal profession is necessary?

Ans. The observance of the code of ethics for the legal profession is necessary for the stable growth of the efficient bar of councils in the country.

Q15. What are the main aspects of the duties of a legal professional?

The practicing lawyer shall have the social responsibility and dignity of the legal profession and a high standard of integrity and efficient service to his client as well as for public welfare.

Q16. Define professional ethics of legal profession?

Ans. a) The ethics of the practice of the legal profession is the body of rules and practices which determine the professional conduct of the members of the bar.

b) Professional ethics for lawyers may be defined as a code of members of the bar.

c) Professional ethics of lawyers may be defined as a code of conduct written or unwritten for regulating the behavior of a practicing lawyer towards society,  the court, the profession, his client, and towards himself.

Q17. How norms of professional ethics of a lawyer are fixed?

The norms of morals of the practicing lawyer shall be fixed keeping in view the intellectual standing of the high-level social responsibility and dignity of the legal profession and high standard of integrity and efficiency service to his client as well as the public good.

Q18. Who is an advocate in a judicial system?

An advocate is an officer of the Court and is required to maintain towards the Court a respectful attitude bearing in mind that the dignity of the judicial office is essential for the survival of the society. The Supreme Court has rightly observed that the legal profession is a partner with the judiciary in the administration of justice.

Q19. Is there a statutory regulatory body in India to regulate and monitor the conduct of lawyers?

Ans. Yes, The Indian government has established a statutory body known as The Bar Council of India under the Advocate Act, 1961 to regulate the professional conduct of an advocate.

Q20. How lawyers are considered?

Ans. The Lawyers are considered to be the center of the administration of justice. 


Thanks for reading till the end. Please share this with all legal professionals. 

Legal professional ethics: Short questions and answers 1

Vande Matram! In this article, you are going to read and note down the short question and answers related to legal professional ethics. Well all over the world the legal profession is having the same ethics. So let's begin.

Q1. Ethics are nothing but the _____ of the behavior with others.

Ans. Ethics are nothing but the fundamental requisite of the behavior with others.

Q2. What do ethics denote?

Ans. Ethics denotes human behavior to make decisions between what is correct and what is wrong.

Q3. What is ethics?

Ans. Ethics is the science of morals and rules of conduct.

 Q4. How do ethics add value to life?

Ans. Ethics examines human conduct and lays down rules of duties and ideal conduct dealing with the value of life. Ethics concentrates on principles affecting man's conduct to determine the standard of right and wrong.

 Q5. Define ethics.

Ans. Ethics is defined as that branch of philosophy dealing with values relating to human conduct concerning the rightness and wrongness of certain actions and to the goodness and badness of motives and the end of such actions.

Q6. What is professional ethics?

Ans. Professional ethics are those set of codes or moral principles that govern a person's conduct in a professional workplace or work life.

Q7. Professional ethics consist of _____________.

Ans. Professional ethics consist of those fundamental values on which the profession has been built.

Q8. Towards whom a lawyer is having duties for the observance?

Ans. Legal ethics is one of the professional ethics which lays down certain duties for the observance of members of the legal profession i.e. advocate, which he owes to the society, to the court, to the profession, to his client, and to himself.

Q9. Legal profession has been created not for ____(i)____ but for the _____(ii)_____.

Ans. (i) private gain (ii) public good

Q10. Legal profession is not a ____(i)____  but a branch of the _____(ii)_____.

Ans. (i) money-making occupation (ii) administration of justice.

What is the meaning of Professional Ethics in legal profession?

Vande Matram! In this article, you are going to know about the meaning of the professional ethics of an advocate. Well all over the world the legal profession is having the same ethics. So let's begin.

Introduction:

We are humans the rational beings. We have to follow some ethics when we are living in human society. As human evolution was in the process from various ages of history, many advancements took place, and developing certain behavioral values had become the need of society. Ethics are nothing but the fundamental requisite of the behavior and your good behavior with others will decide your value in society. Good professional ethics means a valuable professional of the society. Ethics denotes human behavior to make decisions between what is correct and what is wrong.

Meaning of ethics:

Ethics is the science of morals and rules of conduct. Ethics examines human conduct and lays down rules of duties and ideal conduct dealing with the value of life. Ethics concentrates on principles affecting man's conduct to determine the standard of right and wrong. Ethics is defined as that branch of philosophy dealing with values relating to human conduct concerning the rightness and wrongness of certain actions and to the goodness and badness of motives and the end of such actions.

Meaning of Professional Ethics:

Professional ethics are those set of codes or moral principles that govern a person's conduct in a professional workplace or work life. Professional ethics consist of those fundamental values on which the profession has been built. Legal ethics is one of the professional ethics which lays down certain duties for the observance of members of the legal profession i.e. advocate, which he owes to the society, to the court, to the profession, to his client, and to himself.

The behavior of an individual with others is considered as values that are generally cultured as an element of ethics. Subsequently, these ethics transform into regard for and acquiescence to the law and the legal authorities.

Professional ethics for lawyers:

The legal profession is a profession of great honor. It has been created not for private gain but for the public good. It is not a money-making occupation but a branch of the administration of justice.

A basic requirement for a profession is adherence to a set of professional norms. Professional ethics consists of a code of conduct for regulating the behavior of the individuals who are in that profession. In the legal profession, a lawyer must obey professional codes for fair dealing with the client and upholding self-possession. The observance of the code of ethics for the legal profession is necessary for the stable growth of the efficient bar of councils in the country.

The practicing lawyer shall have the social responsibility and dignity of the legal profession and a high standard of integrity and efficient service to his client as well as for public welfare. 

The ethics of the practice practices legal profession is the body of rules and practices which determine the professional conduct of the members of the bar. Professional ethics for lawyers may be defined as a code of members of the bar. Professional ethics of lawyers may be defined as a code of conduct written or unwritten for regulating the behavior of a practicing lawyer towards society,  the court, the profession, his client, and towards himself.

The norms of morals of the practicing lawyer shall be fixed keeping in view the intellectual standing of the high-level social responsibility and dignity of the legal profession and high standard of integrity and efficiency service to his client as well as the public good.

An advocate is an officer of the Court and is required to maintain towards the Court a respectful attitude bearing in mind that the dignity of the judicial office is essential for the survival of the society. The Supreme Court has rightly observed that the legal profession is a partner with the judiciary in the administration of justice.

The legitimate profession, through the Bar and the law corporations, must aid and monitor its lawyer-members to emancipate their ethical bonuses, while the administrative authority of the Supreme Court must be authoritarian though unbiased and evenhanded. The Indian government has established a statutory body known as The Bar Council of India under the Advocate Act, 1961 to regulate the professional conduct of an advocate.

Conclusion:

Thus we can conclude that ethics are the rules of moral behavior of humans. As the legal profession is a partner in the administration of justice it is necessary for every person related to the legal profession from judge to lawyer to observe the set of professional norms for the public good and to perform his duties towards society,  the court, the profession, his client, and towards himself.

Thursday, 2 December 2021

Section 238 - Effect, on agreement, of misrepresentation or fraud by agent

 

Misrepresentations made, or frauds committed, by agents acting in the course of their business for their principals, have the same effect on agreements made by such agents as if such misrepresentations or frauds had been made or committed by the principals; but misrepresentations made, or frauds committed, by agents, in matters which do not fall within their authority, do not affect their principals.

Illustration

(a) A, being B's agent for the sale of goods, induces C to buy them by a misrepresentation, which he was not authorized by B to make. The contract is voidable, as between B and C, at the option of C.

(b) A, the captain of B's ship, signs bills of lading without having received on board the goods mentioned therein. The bills of lading are void as between B and the pretended consignor.

Study Notes:

The Section 238 is all about Agent guilty of Fraud. Where an Agent is guilty of fraud or misrepresentation in matters that are outside the scope of his authority, he is personally liable, and do not affect his Principal.

Thus According to Section 238, The Principal is liable for any fraud or misrepresentation made by his agent during the course of his business, as if the fraud or misrepresentation was done by the Principal himself.

The liability of the principal is based on the rule ‘Qui facit per alium facit per se’, which means the act of the agent is the act of the principal.

In fact if an agent commits a tort or other wrong (e.g. misrepresentation, fraud, etc.) during his agency whilst acting within the scope of his actual or apparent authority, the principal is liable. But the agent is also personally liable and he may be sued also. The principal is liable even if the tort is committed exclusively for the benefit of the agent and against the interests of principal.

Under section 238 of the Act misrepresentation or fraud committed by an Agent may be classified into two categories:-

i) Under his actual or ostensible authority. the principal is liable for the acts which fall under actual or ostensible authority.

ii) Which is not covered within his authority, the principal is not liable for the acts which do not fall under actual or ostensible authority. Where an Agent is guilty of fraud or misrepresentation in matters that are outside the scope of his authority, he is personally liable, and do not affect his Principal.

Depending upon the acts of an agent, the fraud or misrepresentation done by agent following are the variations: -

Agent exceeds authority & act not ratified: Where an Agent acts either without any authority or exceeds his authority, he shall be held personally liable when the principal does not ratify his acts.

Agent receives or pays money: Where an Agent receives or pays money by mistake or fraud to a third party, he shall be personally liable to such third party. Also he can personally sue the third party if the fraud or mistake is accountable to such third party.

Personal liability of an agent to third party: -

An agent is personally liable in following cases:

a) where agent has agreed to be personally liable to the third party.

b) where an agent acts for a principal residing abroad.

c) when an agent signs a negotiable instrument in his own name without making it clear that he is signing it only as agent.

d) when an agent acts for a principal who cannot be sued (e.g. minor principal).

e) an agent is liable for a breach of warranty of authority. Where a person contracts as agent without any authority, there is breach of warranty of authority. He is liable to the person who has relied on the warranty of authority and has suffered loss.

f) Where authority is one coupled with interest or where trade, usage or custom makes the agent personally liable, he will be liable to the third party.

g) he is also liable for the torts committed in the course of agency.

Case Laws:

1) A leading case on this subject is of Lloyds v/s Grace Smith in which it was held that a principal is liable for the fraud of his agent within the scope of his authority whether the fraud is committed for the benefit of the Principal or for the benefit of Agent.

2) National Bank of Lahore v. Sohan Lal: - the manager of a bank, tampered with the locks of the lockers in which plaintiffs’ valuables were kept, the bank was held vicariously liable for the loss which has been caused to a customer due to the theft of their valuables from the lockers.

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