Law:

Section:

(a) Interpretation of document Duty of Court Question of construction of an instrument is a question of law and it is the duty of the Court to interpret a document in its proper legal perspective and apply the correct law. (b) Contract Act (IX of 1872)--Ss.182, 211, 213 & 226 'Agent' Obligations and duties Principal and agent, relationship of Agent is the connecting link between the principal and third person; a sort of conduit pipe or an intermediary who has the powers to create legal relationship between the principal and third party Agent has competence to make the principal responsible to the third person and is an imperative bridge by crossing which, the third person can reach the principal to enforce his legal right or vice versa Principal is liable to the third person for all the acts and deeds performed, within the authority of agency, by his agent, as to those were personally performed by him Agent necessarily and the principal in certain circumstances are liable to each other for accounts Where a person is not liable to the principal for the submission of accounts, such as the profit and loss, such person cannot be termed as agent. Pakistan Paper Corporation Ltd. v. National Trading Company, (NTC) Limited 1983 CLC 1695; Messrs Caltex 011 (Pakistan) Limited, Karachi v. Sheikh Rehan ud Din PLD 1958 (W.P.) Lah. 63; Messrs Rohtas Industries Limited v. State of Bihar AIR 1958 Pat. 414 and Moti Lal Channoo Lal Vaish v. Golden Tobacco Company AIR 1957 Madh. Pra. 223 rel. (c) Contract Act (IX of 1872) Ss.182 & 202 Principal and agent, relationship of ¬Termination of contract Appellant was the supplier and the respondent was the buyer After termination of such supply the respondent assailed the action in civil suit Plea raised by the respondent was that there was a relationship of the principal and agent as the appellant was owner of the trade mark and on account of the principle of vicarious liability was liable, to the third party, therefore, the agency stood created Validity Respondent used to purchase raw material from the appellant against price and property in the goods used to pass on to the respondent on the delivery Respondent was not liable…

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