What is the difference between Agent and Servant?

ADVERTISEMENTS:

1. Agent and Servant: There is too much of similarity between an agent and a servant as both are employed to act for and on behalf of a person. However, there is a lot of difference between an agent and a servant.

The Supreme Court clearly explained the distinction between an agent and a servant in Lakshminarayan Ram Gopal and Sons v. Hyderabad Government. The points of distinction are summarized as follows:

Agent

ADVERTISEMENTS:

1. An agent has an authority to create contractual relationship between the principal and a third party.

2. An agent is not subject to the direct control or supervision of the principal. As such, he has greater discretion in his actions. A principal has the right to direct what the agent has to do but the master has also the right to say how it is to be done.

3. An agent is paid commission on the basis of work done.

4. A principal is liable for only those acts which are within the scope of the authority given to the agent.

ADVERTISEMENTS:

5. An agent may work for a number of principals at the same time.

Servant

1. A servant has no such

2. A servant acts under the direct control and supervision of his master, and is bound to carry out all reasonable orders given to him in the course of his work.

ADVERTISEMENTS:

3. A servant is paid by way of salary or wages.

4. A master is liable for the wrongs of his servants committed in the course of employment.

5. A servant usually serves only one master.

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