A contract is a voluntary agreement between two or more parties, which is legally applicable as a binding legal arrangement. The treaty is a branch of legal law in the areas of jurisdiction of civil tradition. Contract law relates to the rights and obligations arising from the agreements. A contract is entered into when the parties agree that there is an agreement. The formation of a contract usually requires an offer, acceptance, consideration and mutual intention that must be linked. Each contracting party must be able to conclude the contract. Minors, intoxicated persons and people suffering from psychological distress cannot have the capacity to enter into a contract. Some types of contracts may require formalities, for example. B a written reminder. The agency is one of the types of contracts. Empirical studies on voluntary respect are relatively new and are gradually multiplying and fuelling theoretical discussions. Some documents, such as Arora and Cason (1995), examine the selection of companies that participate in voluntary, state-subsidized overcomponation programs, such as 33/50, sponsored by the U.S. Environmental Protection Agency.
They find that companies that emit high toxic emissions are more likely to participate in this program. They see this result as a sign of hope, as these companies have the greatest potential to reduce emissions. “Agent” is defined in Section 182 of the Act in the following terms section 182: “Agent” and “Principal” defines an agent is a person engaged in doing everything for another, or representing another action in the relationship with his persons. The person for whom such an act occurs or is thus represented is designated as the client. While a person may not be able to confer rights or impose debts on a third party through a contract with another person, he or she may represent another person to bring him or her into legal relations with a third party. Employment for this purpose is referred to as “agency.” The Agency Act is contained in Chapter X (sections 182 to 238 of the Indian Contracts Act of 1872). The agent may be authorized, expressly or implicitly, to perform an act on behalf of the adjudicating entity. Agency in the Act refers to an authority or the ability of a person to establish legal relations between a person who holds the position of chief and third party.
Thus, a person (the principal) employs another person in an agency (in the “employment contract”). The emphasis on the power of the agent to represent his principle in the relationship with the third person, but, the above definition is enough to embrace a pure and easy servant, even a casual worker, a man hired by me in the street to put my boots in black; Therefore, what distinguishes an agent from a person in charge of an act is the representative capacity of the agent, linked to the power to influence the legal relationship of the awarding entity with third parties. In essence, it is clear that the principal authority, as an agent, has the authority to represent or act on its behalf to establish contractual relations with a third party, it becomes very difficult, because of the large number of parties involved, to conduct negotiations at no significant cost, whether between the recipients of the pollution or between the recipients and the polluters. While it is costly to conduct negotiations or impose a fee, Coase himself indicates that the initial allocation of rights can affect the overall effectiveness of the system. Farrell (1987) found that even free negotiations due to games by participants would probably not achieve social optimum. The simplest case is a case in which: (i) the cost of changing the allocation of pollution is higher than the maximum area between the two marginal payment curves, (ii) property rights can be allocated with very coarse instruments (for example. B, property rights all go to either Agent 1 or Agent 2), and (iii) reallocation (but no negotiation) is expensive.