Difference between Agent and Servant – Agency | Legal Aspects of Business and Technology

Difference between Agent and Servant
Agency | Legal Aspects of Business and Technology
Business Law | BBA | BBA-BI
Management Notes

S.No. Agent Servant
1.  An agent has an authority to create contractual relationship between the principal and a third party. A servant has no 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 leading to greater discretion in his actions.  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.
3. An agent is paid commission on the basis of work done. A servant is paid by way of salary or wages.
4. A principal is liable for only those acts which are within the scope of the authority given to the agent. A master is liable for the wrongs of his servants committed in the course of employment.
5. An agent may work for a number of principals at the same time. A servant usually serves only one master.

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