Distinction between an Agent and Independent Contractor
As between the principal and third persons, any person (whether he has contractual capacity or not) may become an agent. Thus, a minor or a person of unsound mind can also become an agent. An independent contractor merely undertakes to perform certain specified work .An independent contractor has almost absolute discretion whereas an agent is controlled by the principal. Due to the control of the principal, liability is more fairly attributed to the principal for the agent’s actions .
| Basis of distinction | An agent | Independent contractor |
| 1. Control and supervision | He works under the control and supervision of the Principal | He works independently and controls the person to whom he does the work. |
| 2. Personal liability | He is not personally liable for allacts done by him within the scope of his authority. | He is personally liable for all acts done by him. |
| 3. Remuneration | He usually gets commission. | He usually gets the fixed contracted amount or amount at afixed contracted rate. |
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