The characteristics of contract of agency are as follows:
Appointment of the agent:
The agent is appointed on the wish of principal, while the things appropriate.
Mode of appointment:
The mode of appointment may be express or implied.
The work of agent binds the principal to the third person.
No need of consideration:
Absence of consideration does not affect the validity of contract of agency. It is internal matter between the principal and agent.
Agency is based on the agent has to inform his principal all the information as he knows. Similarly, the agent must neither set up adverse title nor use information against the principal obtained in the course of agency.
Delegation of Authority:
The principal delegates authority to the agent to do any work for him or on his behalf.
Purpose of Agency:
The purpose of the appointment of the agency is to establish legal relationship between the principal and third person.
Distinction between Agent and Servant
A servant acts under the direct control and supervision of his master, and servant has to act according to the orders of the master in every particular case. He does not create relations between his master and third persons.
An agent is not subject to the direct control and supervision of the principal. He has often a large discretion to act within the scope of his authority. A principal directs the agent as to what is to be done.