The principal and third parties must be competent into contracts
An agent may be even a minor who can effectively bind his principal. But the principal cannot make the minor agent liable for misconduct or negligence.
Example: P, a principal gives M, a minor, a jewel worth Rs. 100 and instructs to sell it on credit or for less than Rs. 500. M sells the jewel on credit for Rs. 400. P cannot make him liable while he is bound by the sale..
Consideration is not essential. That the principal gives his consent to be represented by the agent is sufficient consideration for the agent .
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