What are the requirements of a Principal and agent?

The principal must have attained majority and must be of sound mind. Similarly, the person to be appointed as agent should also be a major with sound mind. Though section 184 of the Indian Contract Act, stipulates that between principal and agent any person may become an agent, but age and sound mind are important because a minor and a man of unsound mind cannot be responsible for this Principal. Further, as between the Principal and third person the act of an agent is deemed to be an act of the principal so it is necessary that the agent is a major with sound mind. The Power of Attorney holder and donor (principal) should also be majors and of sound mind.