Theory question 105
Law of AgencyCommerce 2 (essay)
(a) List and explain four elements of a valid contract.
(b) Explain four duties of an agent to the principal.
Show the model answer
Model answer
(a) Any four, explained: offer; acceptance (unconditional); consideration (something of value each side gives); capacity of the parties; intention to create legal relations; legality of the object; genuine consent.
(b) Any four, explained: obey the principal's lawful instructions; act with care and skill; act in good faith/avoid conflict of interest; not make secret profits or take bribes; render proper accounts and pay over money received; not delegate his duties without consent; keep the principal's information confidential.
Explanation
Explain each element and duty briefly.