Necessity of Consideration the formation of a Contract of Agency

According to Section 185 of the Indian Contract Act, 1872, "No consideration is necessary to create an agency."

While most commercial agents are paid a commission or salary, the law recognizes Gratuitous Agents. An agency relationship is based on the "consent" of the parties to act in a representative capacity, rather than a bargain of exchange. Once a person undertakes to act as an agent, even without pay, they are bound to act with reasonable care and follow the principal’s instructions.