Travel Agent Law

Law of Agency

1. Principles of Agency

“No word is more commonly and consistently abused in the English language than agency” . Although agency is an every day word whose meaning covers activities ranging from distribution outlets to service centres, it proves its real importance in the business and law context. In this context agency is defined as a fiduciary relationship between two parties which “results from the manifestation of consent by one person to another that the other shall act on his behalf and subject to his control, and consent to by the so to act” .

Agency law cannot function with out three parties being involved. These three parties include the principal, an agent and a third party. The function of an agent is to act on behalf of the principal when making contacts, receiving statements and making representations and to pay and receive money for the principal.

Travel Agents are obviously acting as an agent when selling or booking accommodation, ...