The Relation Between The Principal, Agent And The Third Party

In a highly interlacing commercial and industrial world, the need to employ others (agents) to carry out certain tasks on behalf of the persons employing them (principals) is ever–increasing year by year. Therefore, the rules that govern the relation between the principal and agent, and the relation between either of them and the third party have faced new challenges. This is clearly appears in the daily life and the different kind of cases brought before the courts. As a result of these facts, the aims of this Thesis are to analyze the Relation between the Principal, Agent and the Third party as provided for in the Civil Transactions Act, ١٩٨٤ and comparing it, to some extent, with the provisions of the Agency Act, ١٩٧٤ and the rules which were established by the Sudanese and English courts wherever necessary. The Thesis begins with discussing the concept of the relation between the principal and agent in whole. It pays special attention to the definition of such relation, its elements, the features which distinguish it from other similar relations and its different types. In addition it states the agent's authority with its different kinds and the application of the rules that govern the agent's authority to the limited liability companies. This Thesis also treats the different ways of creating the relation between the principal and agent i.e. contract either express or implied, ratification, estoppel and necessity. Then the Thesis describes, in detail, the legal effects of the relation between the principal, agent and the third parties and the impact of such effects on the relation. Moreover, the Thesis deals with the different ways of terminating the relation between the principal and agent as provided for by the Civil Transactions Act, ١٩٨٤ as well as the ways not provided for in the said Act. Then it handles the agent's duties on termination and the effects of termination on the principal, agent and the third party. The Thesis ends with a conclusion presenting a general survey to what is discussed in it and explaining the shortcomings and defaults which appear from the discussion. The conclusion contains suggestions and recommendations for reform