Theory question 103
Law of AgencyCommerce 2 (answer five questions)
(a) Who is an agent?
(b) Give six duties of an agent.
(c) State three rights of an agent.
Show the model answer
(a) An agent is a person authorised to act on behalf of another (the principal) in dealing with third parties, so that the principal is bound by his acts.
(b) Six duties: obey the principal's lawful instructions; act with care and skill; act personally (not delegate without permission); act in good faith – no secret profit or bribes; avoid conflict of interest; keep proper accounts and hand over money received; keep the principal's business confidential; act within his authority.
(c) Three rights: to receive the agreed commission/remuneration; to be repaid expenses properly incurred; to be indemnified against losses and liabilities incurred in the agency; lien – to keep the principal's goods until paid.
Duties are owed by the agent to the principal; rights are claims on the principal.