Chapter X - Agency
Section 184
Section 184: Who may act as agent
A person’s ability to act as agent toward third parties is distinguished from responsibility to the principal.
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This article is for general information. Refer to the Indian Contract Act, 1872 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
As between the principal and third persons, any person may become an agent, but no person who is not of the age of majority and of sound mind can become an agent, so as to be responsible to his principal according to the provisions in that behalf herein contained.
Rule and business relevance
As between principal and third persons, any person may become an agent. A person lacking majority and sound mind cannot become an agent so as to be responsible to the principal under the specified provisions.
Limits and related provisions
Do not conclude that every act involving a minor agent is automatically ineffective toward third persons. Equally, do not assume ordinary internal recourse against an incapable agent.
Hypothetical business example
Hypothetical example: A principal entrusts a limited transaction to a young representative. The effect on the counterparty and the representative’s responsibility to the principal require separate analysis.
Practical decision flow
Separate external dealings from internal responsibility.
Establish the agent’s age and capacity where relevant.
Check authority and transaction-specific requirements.
Check the applicable legal framework
This guide explains the central provision. Applicable State amendments, the agreement, transaction date and other governing laws can affect its application. Check the current legal framework before relying on it for a commercial decision.
Practical checklist
Do
- Separate external dealings from internal responsibility.
- Establish the agent’s age and capacity where relevant.
- Check authority and transaction-specific requirements.
Avoid
- Do not conclude that every act involving a minor agent is automatically ineffective toward third persons. Equally, do not assume ordinary internal recourse against an incapable agent.
Glossary
- External relationship
- The relationship between principal and third persons.
- Internal responsibility
- The agent’s responsibility to the principal under the Act.
Frequently asked questions
Can an incapable person never act as agent?
The section distinguishes external agency from responsibility to the principal.
What condition limits responsibility to the principal?
The person must be of majority and sound mind for the responsibility described.
Does capacity replace the need for authority?
No. The actual authority still needs to be established.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026