Pure Agent Concept in GST

A commission agent belongs to a somewhat indefinite class of agents. He is employed to buy and sell goods, or transact business generally for other persons receiving for his labour and trouble a money payment, called commission.(5) Del credere agent. A del credere agent is one who, in consideration of an extra commission, guarantees his principal that the person with whom he enters into contract on behalf of the principal, shall perform their obligations. He occupies the position of both a guarantor and an agent.Banker. The relationship between a banker and his customer is really that of debtor and creditor. But there is a super-added obligation on the part of the banker to pay when called upon to do so by the draft or order (in the form of a cheque) of the customer.

• Where he ratifies the act, the agency relationship is sustained and he remains bound by such act of the agent as though he authorized the act from the beginning.
• It was held by the court that the car belonged to Bennett as Searle did not have title and could therefore not transfer that title to Harper.
• He is employed to buy and sell goods, or transact business generally for other persons receiving for his labour and trouble a money payment, called commission.(5) Del credere agent.
• Essays, case summaries, problem questions and dissertations here are relevant to law students from the United Kingdom and Great Britain, as well as students wishing to learn more about the UK legal system from overseas.

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Sam is also passionate about educating and providing valuable information to people. Where the principal is not disclosed, is simply means the opposite of a disclosed principal which is that the existence of a principal is not brought to the knowledge of the third party. The mercantile system encouraged international commerce and exploration.2.

As soon as the act is performed by the special agent, his authority comes to an end. If he does any thing outside his authority, the principal is not bound by it, and therefore, third parties should make proper inquiry as to the extent of his authority before entering into a contract with him. A broker is an agent who is employed to buy or sell goods on behalf of another. He is employed primarily to bring about a contractual relation between the principal and the third parties. He is not entrusted with the possession of the goods in which he deals. A pure agent concept is an important one for businesses as it has directimplications on the value of taxable service.

{His nephew went afterwards and ordered for jewelry on behalf of the owner (the principal) and disappeared. The principal was held liable for the price of the goods, even though he had terminated the agency of his nephew. He did not communicate disclaimer to his supplier whom in the course of their business had known his nephew as his agent. Where he ratifies the act, the agency relationship is sustained and he remains bound by such act of the agent as though he authorized the act from the beginning. Where the principal chooses to ratify under this heading, he must ratify the whole act or contract and such ratification must be done within a reasonable time. He must be a named principal, and he must be shown to have knowledge of the act authoritatively performed by the agent.}