Agency means the relationship between a principal and an agent. The essence of agency is that the principal gives authority to his agent to establish contractual relationship with other third persons. Indian Contract Act has not defined agency, but sections 182-238 deal with agency relationships only.

Rights of an Agent : 

Following are the rights of an Agent:

1. Rights to receive remuneration. 

2. Right of lien. 

3. Right of indemnification against all consequences of all lawful acts done by him in exercise of the authority conferred upon him. 

4. Right of compensation for injuries sustained by him by neglect or want of skill on the part of the principal. 

5. Right of stoppage of goods in transit, in respect of his payments against the principal.

Duties of an Agent : 

1. To carry out the work undertaken according to the directions given by the principal. 

2. To carry out the work with reasonable care, skill and diligence. 

3. To render account to his principal. 

4. Not to make secret profits from the agency. 

5. To communicate with principal in case of difficulty. 

6. To pay sums received for or on behalf of the principal. 

7. To protect and preserve the interests of principal in case of his death or insolvency. 

8. To delegate his authority with the consent of his principal by appointing sub-agents.