Introduction:This case involves an unintended agency formation, where actions led to the assumption of an agency relationship without formal agreement, under the Indian Contract Law.Case Details:Parties: Ms. Chitra (Party A) and Mr. Dev (Party B)Location: Bangalore, IndiaIncident: Ms. Chitra, a business owner, allowed Mr. Dev to deal with her suppliers on several occasions. The suppliers began to consider Mr. Dev as Ms. Chitra’s agent, a status that Ms. Chitra neither expressly confirmed nor denied.Arguments Presented:Ms. Chitra’s Argument: She never formally appointed Mr. Dev as her agent nor consented to any contracts he made with the suppliers.Mr. Dev’s Argument: He believed he had implied authority and acted in the interests of Ms. Chitra’s business.Legal Analysis:The case requires an exploration of implied agency, estoppel, and the representation of authority to third parties.Judgment and Ruling:The court holds that an agency relationship was created by estoppel, as Ms. Chitra's actions led the suppliers to reasonably believe that Mr. Dev was her agent.Impact and Analysis:The judgment emphasizes the implications of implied agency and the significance of clear actions and communications in business relationships to prevent unintended legal obligations.Conclusion:The case underscores the importance of expressly defining business relationships and the potential legal consequences of implied agency.References:Indian Contract Act, 1872Case law on implied agency and estoppel in contract formation

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Discussion Questions:Explore the consequences and legal remedies when an agent acts beyond their authority. How does this impact the principal-agent relationship?Reflect on the role of good faith and fair dealing in agency contracts. How do these principles guide the actions of an agent?

Case Study 2: The Unintended Agency

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